U.S. authorities have downgraded India's aviation safety rating, citing a lack of safety oversight, meaning Indian carriers cannot increase flights to the United States and face extra checks for existing ones.
India's government said it expected to resolve by March all concerns raised by the U.S. Federal Aviation Administration, including appointing an adequate number of flight operation inspectors, and would approach the U.S. regulator for a review of its decision.
"The FAA has determined that India at this time is not in compliance with the international standards for aviation safety oversight," the U.S. regulator told India in a communication, extracts of which were released by the Indian aviation ministry.
Jet Airways (JET.NS) and state-run Air India, the only two carriers that fly from India to the United States, would be hit by the downgrade. Air India has 21 weekly flights between India and the United States, while Jet has seven.
After the news, Jet Airways shares closed 3.7 percent lower in a Mumbai market that ended 0.3 percent higher.
"It's very disappointing and also surprising," Indian Aviation Minister Ajit Singh told a news briefing on Friday after the FAA told Indian authorities that it was downgrading the country to Category 2 from Category 1.
"In our view, 95 percent of all the issues raised have been solved," Singh said, adding they would address all of the FAA's concerns by March.
India joins countries such as Indonesia, the Philippines and Bangladesh that have a Category 2 rating. As of November 22, the FAA kept 81 of the 96 countries reviewed in Category 1.
Amber Dubey, head of aerospace and defence at consultancy KPMG's Indian unit, said safety regulators in some other countries may follow suit after the FAA downgrade, which would then affect carriers like IndiGo and SpiceJet (SPJT.BO), which fly to Asian and Middle Eastern countries.
India's government said it expected to resolve by March all concerns raised by the U.S. Federal Aviation Administration, including appointing an adequate number of flight operation inspectors, and would approach the U.S. regulator for a review of its decision.
"The FAA has determined that India at this time is not in compliance with the international standards for aviation safety oversight," the U.S. regulator told India in a communication, extracts of which were released by the Indian aviation ministry.
Jet Airways (JET.NS) and state-run Air India, the only two carriers that fly from India to the United States, would be hit by the downgrade. Air India has 21 weekly flights between India and the United States, while Jet has seven.
After the news, Jet Airways shares closed 3.7 percent lower in a Mumbai market that ended 0.3 percent higher.
"It's very disappointing and also surprising," Indian Aviation Minister Ajit Singh told a news briefing on Friday after the FAA told Indian authorities that it was downgrading the country to Category 2 from Category 1.
"In our view, 95 percent of all the issues raised have been solved," Singh said, adding they would address all of the FAA's concerns by March.
India joins countries such as Indonesia, the Philippines and Bangladesh that have a Category 2 rating. As of November 22, the FAA kept 81 of the 96 countries reviewed in Category 1.
Amber Dubey, head of aerospace and defence at consultancy KPMG's Indian unit, said safety regulators in some other countries may follow suit after the FAA downgrade, which would then affect carriers like IndiGo and SpiceJet (SPJT.BO), which fly to Asian and Middle Eastern countries.
Source: Automobile News
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