New Delhi: Beleaguered Kingfisher Airlines cannot be closed down just because it is making losses and banks are not helping it out with funds, Civil Aviation Minister Ajit Singh said today.
"You can't close down a company because they are making losses or banks are not giving them money. As long as passenger safety is not jeopardised, as long as they keep their schedule, why should we close down any industry," Civil Aviation Minister Ajit Singh told reporters here.
He was responding to a question from reporters whether the Government would take stringent action against the airlines if it flouts rules.
His comments came even as the Vijay Mallya-owned carrier was asked by its bankers to infuse fresh equity on its own before they lent it additional funds.
Bank chiefs have been quoted as saying that Kingfisher would need to arrange fresh equity of Rs 1,000-2,000 crore before seeking additional funds from the consortium of banks, led by the State Bank of India.
To another question, the Minister said closing down of any airline would impact passengers.
He said Kingfisher has submitted a new schedule of its flights to the Directorate General of Civil Aviation (DGCA) which would closely monitor it.
29/02/12 Press Trust of India/Business Standard
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