Issue
Airlines facing financial difficulties may introduce cost cutting initiatives that risk
compromising passenger safety. IAPA believes a lowering of safety standards can
not be tolerated and is campaigning for global regulation to ensure all airlines meet
all safety criteria.
Background
Just as with any industry it is inevitable that some airlines will experience financial
difficulties at some times – particularly during global recessions or after liberalisation
of airline markets. Obviously there is a concern that safety may be compromised in
the pursuit of economic survival. Airlines may take steps that whilst not directly
affecting the immediate safety of their aircraft are not sustainable over the mid term.
Previously actions such as airlines reducing their stock of spare parts, , increasing
the number of ‘carried-forward defects’, or just allowing safety standards to slip in
general have been noted amongst struggling airlines. Equally many other operators
have been able to maintain the highest standards right up to the point of bankruptcy.
IAPA believes a good regulatory authority will have an Economic Regulation division
to monitor the financial health of its airlines. Airlines in financial difficulties will be
highlighted to the Safety Regulators who can then increase levels of surveillance of
both operations and maintenance to ensure safety standards are fully maintained. If
safety standards are not met they will take appropriate action, if necessary grounding
the airline. Such a policy of enhanced surveillance is essential in these cases and
every regulatory authority has a duty to the public to act in this manner.
Action
IAPA supports the introduction of enhanced regulation to ensure safety standards are
not compromised when airlines are facing economic difficulties. To this end IAPA is
currently actively involved in lobbying governmental bodies on a global basis.
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