Kingfisher not like AI, no direct financial help, says Ajit

Mumbai/ Delhi: New civil aviation minister Ajit Singh has ruled out any government help for loss-making Kingfisher Airlines.
“Supporting (state-owned) Air India is government's responsibility,” he told Business Standard, but the same yardstick couldn’t apply for private airlines.
“Private carriers will have to convince their bankers that they have a viable business plan and ask for help from the bankers. The government cannot and will not give them working capital to operate the airline,” Singh had told this paper in an interview earlier.
This comes in the wake of Kingfishers chairman Vijay Mallya's letter seeking government support.
Mallya also wrote to frequent flyers of the airlines seeking their support in the troubled times.
However, Ajit Singh’s ministry is to ask the Airports Authority of India to grant Kingfisher additional time to pay its dues, amounting to Rs 240 crore. Similarly, it is to write to the petroleum ministry to consider Kingfisher's request for a 15-day credit for aviation turbine fuel purchase from Hindustan Petroleum Corporation (HPCL). Singh will also be convening a meeting of state governments to put forth the aviation sector demands for reduction in sales tax and octroi on aviation fuel.
11/01/12 Business Standard

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Categories: Air India Jan 2012, Kingfisher Jan 2012