Another Airline Bites the Dust

Context:

• This week, the Wadias declared insolvency for their airline, Go First, bringing down the curtains on another airline company.

Concern:

• In its wake, hundreds of passengers, pilots and cabin crew stranded in various locations, and thousands of employees who have been left in the lurch with a long legal battle ahead of them to salvage what is owed to them. 

Earlier instances:

• The last 30 years have seen the failure of Damania Airways, NEPC Airlines, Air Deccan, Air Sahara, Paramount, Kingfisher, Jet Airways and several other smaller airlines in the aviation sector in India.
• Employees of Kingfisher Airlines and Jet Airways are still struggling to get their dues while their owners and promoters live a life of luxury with zero accountability.

Who is responsible for these failures?

• Majorly responsible are the Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA). 
• They lack attention towards the serious deficiencies in safety, the financial security of airlines.
• Oversight audits by the DGCA to assess the financial health of airlines.

A story of distress:

• The DGCA’s Civil Aviation Requirement for Scheduled Transport Operations clearly spells out the minimum requirement for starting/running an airline: finance, crew numbers, other staff and route projections. But, on practical lines, the regulations were missing.
• After the worst of the COVID-19 pandemic was over, it was obvious that every airline in India was deep in the red. Areas that take a hit for airlines in India include training and safety. But, the concern was not noticed properly.

Warning signals:

• The number of aircraft that have been mothballed in several airports in India and the number of accidents and serious incidents over the months have not raised a red flag. 
• Leasing companies repossessing aircraft is a clear indication that the financial health of the airline is in a state of deterioration. 
• Another clear pointer is the cancellation of flights due to “operational reasons”.

Revamp aviation policy:

• What is urgently required in Indian aviation is transparency and accountability. This includes not just the airline owners and promoters but also the Ministry of Civil Aviation, the DGCA and the officials concerned.
• Airlines should also be asked to have a corpus fund locked up to meet the dues of employees and passengers in the event of an airline closing down. 

Way Forward:

• India is a goldmine for tourism. Aviation is a sector that is important to cash in on this. This is the peak time when we need professionals with knowledge to run the sector. 

News Source: The Hindu

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