DGCA Imposes 1 Crore Fine on Air India for Operating Airbus Without Valid ARC

New Delhi.

The Directorate General of Civil Aviation (DGCA) has imposed a penalty of ₹1 crore on Air India for operating an Airbus A320 aircraft without a valid Airworthiness Review Certificate (ARC). The aviation regulator termed the violation as “serious” and held the airline’s top management accountable for the safety lapse.

According to the DGCA’s penalty order, the Airbus A320 was operated on eight flights between November 24 and 25 last year across multiple sectors, including New Delhi, Bengaluru, Mumbai, and Hyderabad, without the mandatory airworthiness clearance.

What Is an ARC?

An Airworthiness Review Certificate (ARC) is a critical annual certification issued by the aviation regulator after an aircraft successfully meets prescribed safety and regulatory inspections. Operating an aircraft without a valid ARC is considered a major breach of aviation safety norms.

Sources indicated that the DGCA took the matter seriously and raised concerns over what it described as the airline’s “negligent approach.”

Air India’s Response

Responding to the DGCA’s order, an Air India spokesperson stated:
“Air India acknowledges receipt of the DGCA order, which relates to an incident voluntarily reported in 2025. All identified gaps have been satisfactorily addressed and communicated to the authority. Air India remains committed to maintaining the highest standards of operational reliability and safety.”

Challenging Phase for the Airline

Air India has been going through a difficult phase following an aircraft accident in Ahmedabad last June. After its acquisition from the government under the privatization process, the airline has struggled to achieve the expected pace of financial recovery.

Reports suggest that Air India is searching for a new CEO to replace its current chief, Campbell Wilson. Wilson’s contract runs until mid-2027, but he is reportedly not inclined to continue beyond that period. Sources indicate that any leadership transition may occur through mutual agreement.

It is also reported that N. Chandrasekaran, Chairman of the Tata Group, has initiated preliminary discussions with potential candidates who have experience managing large airline operations.

One of the key reasons cited for the possible management change is the likelihood that Air India may miss its break-even target by March 31. Additionally, the Boeing 787 Dreamliner accident in Ahmedabad in June 2025 dealt a significant blow to the airline and its turnaround plans.

Furthermore, Pakistan’s closure of its airspace to Indian aircraft has resulted in longer flight routes and higher operational costs, adversely impacting Air India’s financial performance.

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