More trouble for the cash-strapped airline Kingfisher arised after the Directorate General of Civil Aviation (DGCA) which carried out a financial audit of all domestic airlines has found sickness to be pretty endemic in the Indian aviation sector and suggested rather drastic remedies. 

DGCA chief Bharat Bhushan finalized the financial surveillance report on December 28, 2011, which says it was unsafe for cash-strapped Kingfisher Airlines to fly and should be wound up as per a report in ET by Saurabh Sinha. The DGCA report says: "A reasonable case exists for withdrawal of their (Kingfisher's) airline operator permit (licence) as their financial stress is likely to impinge on safety."

The report suggests similar steps against Air India Express. It says, "A prima facie case exists for restricting their operations in view of safety issues." The audit of the almost bankrupt Air India is still on, but the DGCA has found "major financial distress issues" with Jet Airways, JetLite,SpiceJet and GoAir. The reports also talks of "some rapid growth issues" about IndiGo. 

Bhushan has summoned both Kingfisher and AI Express on Thursday (January 5) to explain what plans they have to recover from their current worrisome state. Unless convinced that these plans which would actually lead to the economic recovery of the two airlines and allow them to fly without compromising safety, the DGCA could take the extreme step of cancelling their licence or curtailing their flights.DGCA boss Bharat Bhushan is learnt to have taken a zero tolerance outlook to aviation safety and therefore come up with extreme recommendations for Kingfisher and AI Express.

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