All Indian carriers could potentially suffer from higher lease rates, more stringent maintenance covenants and increased insurance premiums as a result of a perceived increase in risks due to the downgrade of aviation safety ranking by the US authorities, Center for Aviation (CAPA) said on Tuesday. ?Passengers may be less inclined to fly on Indian carriers where they have a choice, particularly US citizens,? the report, ?FAA downgrade of India highlights deep systemic flaws in India?s aviation safety oversight?, said. ?These heightened risks may also impact investor interest in the sector at a time when capital raising is already a challenge,? it added.
The report added that though there exists a possibility that other jurisdictions may raise their own concerns about safety oversight in India, for political reasons other nations may prefer not to take action.
