Tuesday, August 04, 2009

Govt sticks to airline stance

New Delhi: The government today once again ruled out a bailout package for private airlines, a day after they called off their proposed strike on August 18.
“There cannot be a financial bailout for any of the private airlines. Any issue, which is reasonable and fair, the government will try its best and do whatever is possible,” civil aviation minister Praful Patel said today.
“We are not even bailing out Air India, which is owned by the government,” Patel added.
The proposed strike by the private airlines lost fizz after SpiceJet, the country’s biggest low-cost airline, yesterday broke ranks and joined IndiGo, saying it was not interested in a bailout or a confrontation with the government.
Officials said they expected the civil aviation ministry to restart talks with airport bodies and airlines, and get the newly appointed Airports Economic Regulatory Authority of India to put a leash on airport charges.
At the same time, the ministry is likely to urge state governments to cut jet fuel taxes. The levy varies across states.
03/08/09 The Telegraph
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