India’s aviation safety regulator, the Directorate General of Civil Aviation (DGCA), has directed Air India to terminate three senior officials in its crew scheduling unit following serious lapses in safety compliance. Simple Flying broke the story on June 23, 2025, noting the regulatory mandate came amid heightened scrutiny after the June 12 Air India Flight 171 crash in Ahmedabad.
The DGCA’s Findings
According to DGCA documentation and Reuters reporting from June 21, the heads of crew rostering, including a divisional vice-president, chief scheduling manager, and a planning executive, were removed for permitting pilots to operate beyond prescribed duty time limits. In one instance, a Bengaluru–London flight exceeded the 10-hour flight duty limit, violating fatigue regulations.
Separately, three Airbus aircraft continued service despite overlapping “overdue” safety inspections, some lacking current emergency slide checks, prompting additional warnings from regulators.
Air India’s Response
An Air India spokesperson, speaking to Mint and Hindustan Times, confirmed compliance with the DGCA order
“We acknowledge the regulator’s directive and have implemented the order… the COO will provide direct oversight to the Integrated Operations Control Centre. Air India is committed to ensuring total adherence to safety protocols.” Mint
The airline has also voluntarily conducted enhanced pre-flight inspections on all 787 Dreamliners following the Ahmedabad crash, with Indian regulators stating no major systemic faults were found in those checks.
Systemic Oversight Issues
Safety experts point to these lapses as indicators of deeper systemic risks. Reuters reports note that between 2023 and 2025, a dozen safety violations involving Air India, such as flights with defunct oxygen systems, fines were imposed in several instances .
Reuters also confirmed that DGCA warnings in mid-June highlighted recurrent infractions, specifically flagged to Air India’s Airbus division for expired emergency gear . An annual audit by DGCA officials scheduled from June 24–26 further reinforces the scale of regulatory oversight facing the airline.
Broader Industry Implications
Experts caution that the latest actions follow the devastating AI171 Dreamliner crash, which claimed nearly 270 lives and triggered government-led investigations. The airline has grounded eight international routes and significantly scaled back its fleet, particularly in Europe and the Middle East, citing safety stabilization.
While the DGCA has stated no fundamental safety issues were found in the Dreamliner fleet during post-crash inspections, it continues to flag equipment and operational issues across other aircraft types, particularly Airbus narrowbodies.
Regulatory Reforms Ahead
In parallel with these measures, DGCA is requesting pilot and dispatcher training data for the AI171 crew, mandated emergency drills at government-managed airports, and called for full-scale safety audits at flight schools, all part of India’s broader safety overhaul.
Despite the scale of current reforms, safety advocates argue that gaps, including maintenance backlogs, fatigue monitoring and internal compliance structures, need fundamental restructuring to match India’s rapid aviation growth.
Leadership Accountability
Air India’s parent, the Tata Group, and Chairman N. Chandrasekaran have framed the AI171 as a turning point, promising institutional change while acknowledging past oversight failures .
The airline’s CEO, Campbell Wilson, has emphasized voluntary safety checks and increased oversight but faced criticism that initial statements echoed those of other crash-affected carriers, stirring debate about transparency and messaging.
What Comes Next
- Leadership shake-up: DGCA disciplinary actions and firings may set a precedent for greater internal accountability at Air India.
- Audit outcomes: June audits and crew data reviews could reveal deeper issues in pilot fatigue, dispatcher practices and dispatch protocols.
- Rebuilding trust: Passenger sentiment is fragile; sustained safety commitments will be key to restoring consumer confidence.
- Regulatory strengthening: The DGCA’s intensified oversight may ripple across Indian carriers, accelerating fatigue and maintenance regulations.
Outlook
India has emerged as the world’s third-largest aviation market, but recent tragedies and regulatory breaches highlight growing pains. Addressing crew scheduling failures, overdue maintenance, and systematic fatigue management are essential but pose tough challenges given Air India’s scale and fleet diversity.
While current reforms, including staff terminations and enhanced audits, demonstrate regulatory muscle, long-term safety depends on reshaping operational culture, investing in training infrastructure, and streamlining oversight capabilities.
Civil aviation analysts contend that success will demand coordination between carriers, regulators and government, supplemented by independent audits and transparent incident reporting. Only then can India confidently meet its goal of building a safe, reliable global aviation network.
Insurance & Liability Claims
- Estimated insurance payout from the Flight 171 crash
- ₹1,000 crore ≈ $120 million USD
- Global reinsurers estimate a potential liability of up to $475 million USD, including third-party and ground damage.
Regulatory Fines
- Total DGCA fines (FY 2024–25): ₹2–3 crore = $240,000–$360,000 USD
- ₹99 lakh = ~$118,800
- ₹80 lakh = ~$96,000
- ₹90 lakh = ~$108,000
Revenue & Market Impact
- Passenger booking drop post-crash: ~20% decline
- This translates to tens of millions of dollars in lost revenue over a quarter depending on route and class mix (not fully disclosed).
- Stock market impact on Tata Group was minimal due to corporate insulation and anticipated insurance coverage.
Operational & Compliance Costs
- Unquantified but material expenses related to
- Fleet inspections and aircraft groundings
- Emergency retraining and crew rostering system overhauls
- Increased audits and compliance-driven staffing needs
While insurance absorbs the bulk of the immediate financial risk (~$120M–$475M), regulatory fines and operational disruptions are adding hundreds of thousands to potentially millions more in near-term costs. Long-term effects on revenue and reputation could slow Air India’s recovery under Tata’s management.
