Panel seeks clarity on Pawan Hans future; flags aviation safety gaps

New Delhi: A parliamentary committee has asked the civil aviation ministry to consider selling state-owned chopper service firm Pawan Hans Ltd or reposition it as a northeast-focused helicopter operator.

“The committee recommends that the ministry articulate a clear, strategic direction for Pawan Hans, whether restructuring, re-attempting disinvestment, or repositioning it as a strategic helicopter operator for North Eastern region and island connectivity,” the 31-member panel said in a report tabled in Parliament on 25 March.

The civil aviation ministry holds a 51% stake in Pawan Hans, while Oil and Natural Gas Corp. owns the remaining 49%. Efforts to privatise the helicopter operator in 2016, 2017, 2019 and 2020 did not materialise, following which the process was called off in 2023 after a winning consortium was disqualified due to pending legal cases.

The firm reported revenue of ₹369.63 crore and a loss of ₹16.15 crore in FY25. It has a fleet of 46 helicopters.

The panel, headed by JD(U) MP Sanjay Kumar Jha and comprising members from Rajya Sabha and Lok Sabha, also flagged staff shortages at the directorate general of civil aviation (DGCA) and the bureau of civil aviation safety (BCAS).

DGCA is the country’s civil aviation regulator responsible for safety oversight, and BCAS is responsible for security oversight and protocols for airports and airlines.

Vacancies in DGCA stood at 48.3%, with 787 posts vacant out of 1,630 sanctioned strength. At BCAS, 181 of 598 posts are vacant, a 48.3% gap. This means that one in every two posts at the DGCA is vacant, and one out of every three posts at the BCAS is vacant.

These vacancies represent a “structural challenge to the regulatory capacity and safety oversight", the panel said. It has been recommended that vacancies be filled on an “urgent basis” through measures such as fast-tracking UPSC-recommended candidates and exploring lateral hiring.

Industry experts said the staffing shortage issue, particularly in technical roles, remains unresolved.

“There are a couple of problems at the DGCA that remain unaddressed. Firstly, technical vacancies in key departments such as air safety and airworthiness continue to remain. These are two critical departments. Secondly, the chief at the regulatory body is almost always a bureaucrat, rather than a technical person,” said Rajendra Prasad, former director (Airworthiness), DGCA, and an aviation safety expert.

“At least, the Parliamentary committee is finally acknowledging that filling up of vacancies is critical and needs to be addressed as a priority,” Prasad added.

The civil aviation ministry did not respond to queries till publishing time.

This panel also said the aviation ministry should expedite the process for selling the three subsidiaries of Air India Assets Holding Ltd (AIAHL), the special purpose vehicle set up to house the residual assets of Air India after its privatisation.

AIAHL includes maintenance, repair, and overhaul firm AI Engineering Services Ltd (AIESL), ground-handling entity AI Airport Services Ltd (AIASL), state-run airline Alliance Air Aviation Ltd.

"Meanwhile, AIASL's profit declined precipitously from ₹40.42 crore to ₹2.94 crore, raising questions about the trajectory of the asset's value,” it said.

Alliance Air reported losses of ₹682.94 crore in FY25, while AIASL's profit slumped to ₹2.94 crore from ₹40.42 crore in FY24. AIESL is yet to publish its FY25 numbers. It reported a profit of ₹254.98 crore in FY24.

The committee recommended that “the ministry accelerate the divestment process with a firm roadmap with defined milestones, engage proactively with DIPAM (Department of Investment and Public Asset Management) and assess whether the declining financial trajectory of AIASL warrants consideration of asset level monetisation as an alternative.”