Airlines on warpath, threaten to strike on Aug 18

Mumbai/New Delhi: Private airlines on Friday ganged up and decided to suspend operations on August 18 if the government does not help them cut costs, prompting an offer of talks but no assurances from civil aviation minister Praful Patel.
Painting a desperate picture of their situation, industry lobby body Federation of Indian Airlines (FIA) said unless the government helps them by lowering taxes on jet fuel and bringing down airport charges, their survival is in doubt.
But the strike threat by Jet Airways, Kingfisher Airlines, SpiceJet, IndiGo and GoAir, which between them carry about one lakh passengers daily, was interpreted as a pressure tactic by a senior official in the civil aviation ministry.
“The strategy is dual. They want to put pressure on the government. Also, they are putting pressure on their creditors such as oil companies and airport operators,” he said on the condition of anonymity.
Jet Airways, Kingfisher, SpiceJet and IndiGo are yet to pay Rs 212 crore to the Airports Authority of India for using its infrastructure. Kingfisher, Jet and SpiceJet also owe Rs 1,726 crore to oil marketing companies.
The private airlines’ high-pitched demand has been timed to coincide with discussions that may result in the government bailing out beleaguered national carrier Air India soon, said an aviation analyst who did not wish to be identified.
The government last week asked the finance and petroleum ministries to help Air India. It has appointed SBI Caps as advisor to chalk out a revival plan for the ailing national carrier, which suffered losses of Rs 7,200 crore last year.
Air India will increase the number of flights to reduce inconvenience to passengers, Mr Patel said. It is not known if Paramount Airways will join its private sector peers in the strike.
01/08/09 Economic Times

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Categories: Indian Aviation- In General Aug 2009