India’s aviation safety regulator, the Directorate General of Civil Aviation (DGCA), has imposed a fine of Rs 1 crore on Tata Group-owned Air India for operating an Airbus A320neo without the requisite airworthiness certification on at least eight routes last year, according to sources.
DGCA probe and penalty
On December 2 last year, the DGCA said it was probing the incident involving Air India operating an A320neo aircraft without the required airworthiness certification on at least eight routes.
Sources on Friday said the regulator has now imposed a Rs 1 crore penalty on the airline for the violations.
Airline’s response
“Air India acknowledges the receipt of a DGCA order in relation to an incident that was voluntarily reported back in 2025. All identified gaps have since been satisfactorily addressed and shared with the authority,” the airline said in a statement.
On November 26, 2025, Air India informed the DGCA about the operation of the A320 aircraft with an expired airworthiness review certificate (ARC) on eight revenue sectors.
What is an airworthiness review certificate (ARC)?
An ARC is issued annually for an aircraft after a comprehensive review of its maintenance records, physical condition and verification of compliance with all airworthiness standards. It serves as a validation of an aircraft’s main certificate of airworthiness.
Under existing norms, Air India has been delegated the authority to issue the ARC for its aircraft.
Previous regulatory actions
Tata Group-owned Air India has previously faced regulatory action for certain violations.
Compensation for AI 171 plane crash initiated
In other news, Air India has now initiated the process of providing final compensation to the families of those who died in the AI 171 plane crash. Those willing to accept the final compensation amounts will be required to ensure that they will not make any future claims against the airline, original equipment manufacturers or government agencies in connection with the fatal accident.
Air India is currently in the process of disbursing interim compensation of Rs 25 lakh to the affected families. According to sources, if the final compensation amount calculated is less than Rs 25 lakh already paid as interim relief, families will be offered an additional Rs 10 lakh.
In addition, an ex gratia amount of Rs 1 crore is being provided to the families of the deceased by the AI-171 Memorial and Welfare Trust, which has been set up by the Tata Group.
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