Will Imposing Fines On Aviation Companies With Deep Pockets Help Improve Airline Safety?

However, since its implementation in 2021, the measure has failed to fulfil the desired outcome. The new regulatory norms seem to encourage airlines operators to prioritise revenue generation over safety.

Take the recent case of an 80-year-old passenger, who collapsed while walking towards the terminal building at the Mumbai Airport and died. Air India allegedly didn’t have an adequate number of wheelchairs to provide to needy ones.

The airline, in its defence, said that the passenger decided not to wait for another wheelchair and walked along with his wife whom the airline had already provided with a wheelchair. A probe conducted by the Indian aviation watchdog, the Directorate General of Civil Aviation (DGCA), found lapses on the part of Air India and imposed a fine of Rs 30 lakh.  

Though the regulator did take the airline to task for not taking action against the earring officials, it didn’t issue any direction in this regard. This was also not the first occasion that a fine was imposed on an aviation company for overlooking passenger safety norms.

Since the implementation of the enhanced fine, the DGCA has imposed fines on numerous occasions on various airlines -- be it Indigo, Air India, SpiceJet or others. But these haven't proved be deterrent enough. DGCA, it would seem, needs to do much more toward passenger safety. 

DGCA’s data itself is a case in point. The quantum of fines imposed rose 39 per cent in calendar year 2023, to Rs 2.75 crore from Rs 1.97 crore 2022. The trend continues through 2024. According to news reports, more than half a dozen cases of financial penalties have been handed over to various airlines.

Unless officials are held accountable for negligence, will imposing only fines for safety violations on aviation companies with deep pockets serve any purpose?

“Imposing financial penalties for flight safety-related mistakes is tantamount to seeking blood money. The financial loss is eventually incurred by the shareholders, routed via the company management. The erring officials go scot-free,” said Ajay Ahlawat, a retired group captain who served the Indian Air Force for several years before coming into civil aviation.

“The senior management in the airlines as well as the regulator continue to enjoy their power and privileges. There has to be increased accountability. Penal action must be in terms of counselling, warning, removal from the post, and loss of pay; with punishment being commensurate with the mistake," Ahlawat said. "We must remember what is at stake -- public trust, confidence and the lives of our citizens.”

Experts associated with safety checks in DGCA say that at times the regulator has gone beyond financial penalties and imposed harsh measures to discipline them but those instance are far and few between. For instance, in June 2023, it placed SpiceJet under enhanced surveillance due to frequent cases of technical glitches in the aircraft.

Similarly, in August last year it suspended Air India’s two simulator training centres – one in Hyderabad to train pilots for Airbus aircraft and the other one in Mumbai for training of pilots who fly Boeing – after finding them short of adequate safety measures.

In September 2023, the DGCA imposed a fine of Rs 30 lakh on Air India for allegedly fabricating an internal audit. Along with the financial penalty, it suspended the chief of flight safety for a month.

Fines Not A Panacea

“In the past one year, the DGCA has fined Air India seven times for various violations and imposed a total fine of Rs 3.10 crore. Isn’t it a trivial amount for a company owned by the Tata group?"  said Capt SS Panesar, who retired as Director of Flight Safety & Director Training from erstwhile Indian Airlines.

"Even a fine of Rs 500 crore might not be a big deal for big companies but as we know that aviation is a zero error business, a small error on the part of any individual can lead to a disaster,” he added. “Can any monetary fine improve safety or bring back the dead after a crash? DGCA has fined aviation companies on many occasions for violations of safety rules but they have rarely taken any strict action or fined persons responsible for these lapses.” 

Captain Amit Singh, commercial pilot and founder of Safety Matters Foundation, is of the view that the DGCA enforcement policy is based on the principle of public doctrine, which means that powers held by the officers originate with the people and are entrusted to DGCA officers in good faith to be used for the benefit of the people.

According to him, the aim of imposing penalties is that these act as a deterrent so that the operator takes corrective action and ensures that the root cause of the violation is eliminated.

“Fines alone are not sufficient deterrence since these airlines have deep pockets. DGCA must, however, issue a show-cause to the manager accountable. To ensure public safety, sanctions must also be imposed on the affected service to ensure that they are operating within the permissible range,” Capt Singh said.  

He added, “If for example, the cargo scanners are found deficient then the operators' approval to carry dangerous goods onboard must be restricted along with the fine imposed. If the flight and duty time limits are not being adhered then the operators' schedule should be restricted to ensure that the systems safety buffers are restored.”

In addition, Singh suggested that a review period should be determined so that the safety management system keeps track of the process found in non-compliance.