Concerned over the possibility of loss-making Indian carriers cutting corners on safety, aviation regulator DGCA is considering penalising them if they compromise on the issue due to cash crunch.

However, the penalty may not be financial but aviation regulator DGCA could consider measures like disallowing defaulting airlines from expanding their fleet or operations till they started spending the right amount on ensuring aircraft safety, official sources said here today.

In extreme cases, the licenses of airlines, facing serious financial crisis that severely affects its capability to operate its full flight schedule, may not be renewed until they become capable enough to do so, they said.

With the situation facing beleaguered Kingfisher Airlines making headlines, the Directorate General of Civil Aviation has begun evaluation and monitoring of financial data of all Indian carriers to assess whether they were spending the required amount to meet all safety parameters including regular engineering checks of their fleet.

“The evaluation process would include collection of information through formal or informal channels and monitoring of indicators of change, which could impact the safety of aircraft operations,” a senior official said, adding that financial surveillance would be carried out by three DGCA teams set up for the purpose.

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