Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Tata-SIA Vistara’s first aircraft delivery hits DGCA hurdle
BackBack

Tata-SIA Vistara’s first aircraft delivery hits DGCA hurdle

The DGCA official and Vistara team have now flown back from France without the aircraft

Tata group and Singapore Airlines Ltd are making their third attempt to start operations in India in a joint venture, having been thwarted twice in the past by rivals. Photo: ReutersPremium
Tata group and Singapore Airlines Ltd are making their third attempt to start operations in India in a joint venture, having been thwarted twice in the past by rivals. Photo: Reuters

New Delhi: Tata SIA Airlines Ltd is downplaying a delay in taking delivery of its first aircraft which, according to one government official, was caused by red tape.

“There was an opinion that the operations manual of the airline is not ready so it cannot be allowed to fly into India," said this person who asked not to be identified.

Interestingly, the Directorate General of Civil Aviation (DGCA) had initially cleared the delivery and a team from the airline, branded Vistara, and an officer from DGCA was at the Airbus factory in Toulouse, France, when it changed its mind.

Vistara confirmed it has not taken delivery of the aircraft.

“As you are aware, there are multiple approvals and the completion of the process takes time. Moreover, since this is the delivery of our first aircraft, as a new airline, there are additional things which have to be done," a spokesperson for Vistara said. “We need a little more time to file for over flight clearances. Hence, we have decided to defer our ferry flight."

New airlines are typically allowed to do a ferry flight of their first aircraft without operations manual in place after which they undergo other mandatory procedures including proving flights under DGCA eye.

In this case, a DGCA officer had flown to Toulouse and was stationed there to inspect and register the plane.

Vistara’s pilots and engineers too had flown to Toulouse.

Both the DGCA official and the Vistara team have now flown back without the aircraft.

The airline declined to comment on whether there had been any issues with DGCA on the delivery.

Tata group and Singapore Airlines Ltd are making their third attempt to start operations in India in a joint venture, having been thwarted twice in the past by rivals. Air India Ltd was started by J.R.D. Tata in 1932 as Tata Airlines, which was renamed Air India and then nationalized in 1953. In the latest venture, Tata Sons Ltd, the holding company of the $109 billion Tata group, has a 51% stake and Singapore Airlines the remainder.

Vistara was being pushed to delay its launch to avoid the peak festival season, a move that will benefit rivals, said M.R. Sivaraman, former director general of DGCA.

“You must also be aware that senior officers of other airlines must be trying all tricks to delay the launch because the heavy traffic season will start now and they do not want Tata-Singapore to catch the flight. And if you go to the DGCA you will find many of them there," Sivaraman said.

Mint could not independently substantiate his allegation.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Sep 2014, 12:23 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie