India’s aviation market faces safety issues and losses
India’s aviation sector, the world’s third-largest domestic aviation market, has faced safety, regulatory and financial loss issues amid crises at two leading carriers — Air India and IndiGo. Channel NewsAsia reports that these two companies account for nine out of every 10 seats on the country’s domestic flights.
Earlier this month, an Air India aircraft operating a flight from Phuket to New Delhi dropped 91 metres while in the air. Twenty-four passengers were injured in the incident. After landing, reports emerged that the captain had tested positive for marijuana. Air India ordered a one-time drug test for all pilots, while preliminary investigation findings are expected in the coming weeks.
Air India safety concerns
The incident intensified scrutiny of Air India after last year’s crash of a Boeing 787 bound for London. A total of 241 people were killed. According to a parliamentary committee report, a separate audit of Air India identified around 100 safety shortcomings, including seven violations requiring urgent correction, as well as gaps in regular training for Boeing 787 and Boeing 777 pilots.
Former aviation operations chief Shakti Lumba said that Air India’s safety culture is weak. Former Air India executive director Jitender Bhargava, commenting on reports about drugs involving a pilot, raised questions about management oversight. Air India and IndiGo did not immediately comment to AFP.
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Losses and regulation
Safety problems coincided with financial pressure on Indian airlines. The closure of Pakistan’s airspace after tensions between New Delhi and Islamabad escalated last year forced carriers to use longer and more expensive routes. Higher jet fuel prices linked to the war in the Middle East were an additional factor.
Rating agency ICRA estimates the combined losses of Indian airlines at nearly $4 billion in the current financial year. Air India’s losses for the previous financial year more than doubled to $2.3 billion, while IndiGo reported losses for two consecutive quarters. IndiGo last month stopped operating wide-body aircraft, while Air India is reportedly considering delaying deliveries of up to 500 aircraft.
Last year, IndiGo cancelled a significant number of flights due to insufficient preparation for new rules on pilot fatigue. Experts viewed the partial temporary suspension of these requirements as a sign of problems in the work of India’s civil aviation regulator, the DGCA. Over the past decade, more than 70 airports have been added in India, while local airlines have ordered around 1,500 aircraft. Last year, Indian carriers transported approximately 167 million passengers — more than twice as many as 10 years ago.
