Government not to bailout private airlines

New Delhi: Civil Aviation Minister Praful Patel on Saturday said that the government would not bailout private airlines. Private airlines ganged up and decided to suspend operations on August 18 if the government did not help them cut costs
"The government understands the difficulties being faced by aviation sector. However, the government does not support any move that will inconvenience the travelling public of the country," Patel said in a statement.
"We advise the airlines to engage in a dialogue with the government," he said, while warning that the Directorate General of Civil Aviation, the sector's regulator, will be asked to take strict action if the airlines did not withdraw their threat.
The civil aviation minister said state-run Air India, which is not a member of the federation, will mount additional services Aug 18 so to reduce the inconvenience of passengers. It is not known if Paramount Airways will join its private sector peers in the strike.
"The issue of tax on aviation turbine fuel is a state issue and the aviation ministry has been requesting the states for the past few years to see reason," he said, referring to one of the demands of private carriers for a cut in jet fuel prices.
Apart from a cut in sales tax on fuel, the private carriers have asked the government to direct oil retailers to sell aviation jet fuel cheaper and reduce the airport charges which they say have ballooned ever since private players were allowed into the field.
01/08/09 Economic Times

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Categories: Indian Aviation- In General Aug 2009