Address collateral damage to reputations by putting safety first
The crash has also triggered what may be the costliest claim in India's aviation industry. The aircraft hull and engine value is put at $125 million, while the liability for loss of life of passengers and others on ground could notch up to another $350 million. It has also been a huge setback for Air India, which the Tata Group acquired in October 2021. The company has been on a massive upgrade in recent months, including an order for 500 new planes, rebranding of the name and livery, and refitting of 67 older planes. Much of the hard work may now be under a cloud.
Air India Chairman N Chandrasekaran acknowledged as much when he said at a recent review that the fatal crash has been the most heartbreaking crisis of his career, and that it should lead to the building of a safer airline. Running an airline is a complex proposition, but the pillar everything rests on is its safety record. Even in the aftermath of the June 12 crash, three other India-bound Boeing Dreamliners operated by Air India and two other airlines were forced to return on safety considerations. Rigorous pre-flight checks have been introduced and at least five Air India flights including a Delhi-Paris Dreamliner flight were cancelled on Tuesday. Even though disruptive in the near term, that is the way to go. Air India also needs to look closely at the doubts raised about its Dreamliner fleet. Perhaps the best way to honour those who perished is to ensure such a disaster does not happen again.
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Time of India
28 minutes ago
- Time of India
Plane shortage grounds Air India's Ahmedabad-London flight
AHMEDABAD: Air India's Ahmedabad-London Gatwick flight, renumbered AI 159 from AI 171 after the tragic crash last week, was cancelled Tuesday shortly after it missed its scheduled 1.10pm departure amid speculation of a snag. The airline clarified that the reason was "aircraft unavailability" resulting from airspace restrictions over West Asia and extended safety checks since the June 12 Dreamliner crash on this route. Air India, which resumed the flight on Monday after a gap of four days, announced Tuesday's cancellation after the Boeing 787-8 had completed its return leg from Gatwick to Ahmedabad airport only at 1.19pm, hours behind schedule. "There was no technical snag, as claimed," Air India said, adding that airspace curbs and additional checks were "leading to longer than usual turnaround of aircraft". "We regret the inconvenience caused and have made alternate arrangements for affected passengers. Hotel stays, full refunds, or complimentary rescheduling are being offered, based on passenger preference," the statement said. Meanwhile, Air India cancelled nine scheduled international flights Tuesday, eight of them involving Boeing 787-8 Dreamliner aircraft, as factors ranging from DGCA-mandated additional safety checks to increased turnaround time because of airspace closures stretched the carrier's maintenance and operational capabilities. Besides the renumbered AI 159 Dreamliner from Ahmedabad to London Gatwick, the airline announced the cancellation of its Gatwick-Amritsar, Delhi-Vienna, Delhi-Paris, Paris-Delhi, Delhi-Dubai, Bengaluru-London and London-Bengaluru flights. A ninth flight, a Boeing 777 operating between San Francisco and Mumbai with a pit stop in Kolkata, was grounded in the Bengal capital because of a snag. This led to return Mumbai-San Francisco flight being cancelled soon after. The scheduled Vienna-Delhi flight escaped the cascading effect of multiple cancellations because a Boeing 787-8 was already parked there, officials said. Air India's fleet includes 33 Dreamliners, of which four are undergoing long-term maintenance. At least 24 of the remaining 29 aircraft of this series have gone through one-time safety inspections ordered by the country's civil aviation regulator. Longer routes to and from the West because of the Israel-Iran war have compounded Air India's operational troubles since the Dreamliner AI-171 crash in Ahmedabad on June 12, which was India's worst civil aviation disaster involving a single aircraft. With Iran and even Jordanian airspace closed, flying durations on some routes have increased by about an hour. Pilots and cabin crew having to fly longer also impacts turnaround time. Sources said Air India had petitioned DGCA to ease stipulated duty intervals that are meant to prevent crew fatigue. "Air India has expanded its routes in the past two years while aircraft induction has been slower than expected due to global supply chain issues. As a result, the airliner has stretched itself thin, which affects on-time performance. There's hardly any buffer if an aircraft has to be grounded for technical reasons," a source said.
Time of India
an hour ago
- Time of India
India, China companies explore technical tie-ups as as govt plans to ramp up electronics parts making capacity
Voltas' recent attempt to revive its joint venture talks with China's Highly Group for a compressor plant in India fell through, with the Chinese company instead offering a technical alliance. Highly cited prolonged Indian government approvals and ongoing geopolitical tensions as risks to an equity partnership. This marks a shift from two years ago, when Highly had rejected a similar tech-only tie-up with Voltas. Tired of too many ads? Remove Ads 'China's Tech Expertise' Tired of too many ads? Remove Ads Popular in Cons. Products 1. AC makers lower sales projection to 10-15% for 2025 despite spike in June numbers Tired of too many ads? Remove Ads When a team from Tata Group-owned air-conditioner maker Voltas visited China in late May to revive talks with Highly Group for a joint venture compressor plant in India , the Chinese major declined, and instead proposed a technical cited prolonged government approvals and geopolitical tensions as major risk factors to an equity partnership in tighter government scrutiny, several Indian firms are exploring Chinese partnerships under the upcoming ₹23,000-crore electronics component manufacturing scheme, and Chinese firms are now much more open to technical tie-ups and minority joint ventures than had rejected a similar technological collaboration proposal from Voltas two years ago.'The economic truth is we have to partner with the Chinese companies for the upcoming component scheme,' the chief executive of one of the largest electronics contract manufacturers in the country told ET on the condition of anonymity. 'While we don't need their capital as much as their technology, they, too, understand the changed geopolitical scenario, and are open to either holding a minority 20-30% equity in joint ventures or just a technical alliance.'Homegrown electronics contract manufacturers such as Dixon Technologies PG Electroplast , Epack Durable and Bhagwati Products are in talks with multiple Chinese companies to apply for the component scheme.A leading contract manufacturer said some Chinese firms have agreed to non-equity Group has already finalised a technical alliance with Noida-based contract manufacturer PG Electroplast to manufacture air-conditioner compressors, people cited above Chinese firm is open to more such deals where it will have an assured quantity of production in exchange for its technology, they and Voltas were forced to scrap a joint venture agreement in which the Chinese partner was to hold 60% two years ago. The proposal did not receive the government's Press Note 3 approval. At that time, Highly was not comfortable with just a tech tie-up.A Voltas spokesperson told ET the company undertakes regular visits to key supplier partners including Highly to strengthen technical collaboration and assess future opportunities.'While a range of strategic topics are periodically discussed as part of these engagements, there are no firm developments or commitments at this stage with respect to a joint venture or equity participation,' she Group and PG Electroplast did not Electroplast in a recent earnings call said it is setting up a compressor plant with a capacity of 5 million units per year near Pune for ₹350 has a joint venture proposal with HKC Corp for display modules currently awaiting Press Note 3 clearance. The Noida-based electronics manufacturing services firm will soon file another proposal for a JV with Vivo, the company management said in its latest earnings is also looking to attract over ₹59,000 crore of investments through the electronics component manufacturing scheme to promote domestic production and integrate Indian electronics companies into global value accounts for 70-75% of all electronics components imports into India. The rest comes mainly from Taiwan, Thailand, Vietnam, South Korea and Japan. Industry executives said components coming from Taiwan, Thailand and Vietnam are also mostly made by Chinese 2020, India turned cold to Beijing after military clashes, and issued Press Note 3 norms that require multi-department approvals for investments from businesses and entrepreneurs based in bordering countries such as Indo-Sino equations have further changed after India's 'Operation Sindoor' strike against Pakistan last month when Pakistan used Chinese artillery in the border clashes and claimed China was its 'all-weather strategic cooperative partner and ironclad friend'.
Time of India
an hour ago
- Time of India
Ahmedabad plane crash: Air India, Boeing may face ‘unlimited' liability if found negligent
Air India or Boeing could be liable for 'unlimited' damages if found negligent under international aviation law, according to UK legal experts. While Air India holds $1.5 billion in liability insurance, reinsured through the London market, claims could exceed standard limits in such an event, they said. The Air India Boeing 787 plane that crashed in Ahmedabad on June 12, killed 241 people on board, including 12 crew, and 33 on the ground. Air India has already announced ₹1 crore each as compensation for those killed. Under the Montreal Convention, the airline is presumed liable and needs to pay a prescribed minimum compensation of 151,800 special drawing rights (SDRs) — an International Monetary Fund-defined unit tied to a currency basket— for death or serious injury in a crash. With one SDR valued at about ₹120, that's as much as ₹1.82 crore per person. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Indonesia (Prices May Surprise You) Container House | Search Ads Search Now Undo ET Bureau This airline is liable for this base compensation, regardless of fault. Beyond this, if negligence is proven, additional compensation can be sought. ALSO READ: DGCA gives clean chit to Boeing 787 fleet, flags maintenance concerns at Air India Live Events Families of the victims may also file claims in their home countries, including the UK, where courts typically consider future earnings and personal circumstances. The passengers included 181 Indians, 53 Britons, seven Portuguese nationals and one Canadian. Air India did not comment. Complex, Long-winded Legalities Boeing may also face unlimited liability if a fault with the 787 aircraft is discovered. Payouts could vary based on victims' nationality and income, the experts said. If there is any evidence of faults with the Boeing 787, Boeing will also face unlimited liability, in the US and English courts, said James Healy-Pratt, aviation specialist on UK-based Keystone Law's international aviation legal team. Keystone and Chicago-based Wisner Law Firm have commenced an independent investigation into the disaster. Wisner specialises in aviation-related litigation and also advised clients in the 2020 Air India Express crash. Torts Negligence-related claims are subject to the jurisdiction of UK courts under tort law, said Ashish Kumar Singh, cofounder and joint managing partner of Capstone Legal. Tort law covers injury or loss caused to a person. 'After adducing evidence, cross examination etc, the court can award compensation which is way beyond the insurance limits under the Montreal Convention,' he said. 'However, this exercise is a tedious one and involves complex questions of fact and law.' 'Air India is liable to the families for unlimited damages, unless they can prove they were not negligent, and only then can they limit their liability to 151,800 SDRs,' said Healy-Pratt. 'The legal presumption is that Air India is liable without limit until there is evidence that it can prove to the contrary.' Air India has $1.5-billion insurance cover for widebody aircraft, which industry experts believe is sufficient to absorb payouts, though legal battles could push claims higher. 'Investigations can stretch for months to years and, in such cases, claims are settled in tranches — starting with initial compensation, followed by negotiated settlements or litigation outcomes,' said a senior insurance industry executive. 'Even after paying full SDR-based compensation and some additional settlements, the liability pool is not likely to be exhausted.' However, people in the know said the $1.5-billion liability policy should be sufficient to cover even catastrophic events, unless there are multiple large-scale claims in a single year. 'The liability on the operator, Air India, will have multiple angles — the nationality of the passengers on board will define the minimum liability that is applicable to the operator as per the Montreal Convention,' said Hitesh Girotra, vice president, aviation and specialty lines, Prudent Insurance Brokers. 'Since the aircraft crashed into a residential apartment, there is third-party property damage liability on the operator.' In 2010, ₹7.6 crore was awarded to the family of a passenger in the Air India Express crash at Mangalore airport that killed 158 people. 'No amount of money can ever compensate families who have lost loved ones, but our international team will be seeking the fullest compensation from all potentially responsible parties,' said Healy-Pratt.
