Patel warns airlines against strike; rules out bailout
01 Aug 2009
Civil aviation minister Praful Patel today asked private airlines to desist from their planned suspension of operations from 18 August. He also ruled out any government bailout of private airlines.
The minister said the government was not in position to help private airlines financially but would offer any other possible help.
The warning comes after the Federation of Indian Airlines (FIA) issued the threat of suspension of services beginning 18 August if their demands, including downward revision of aircraft turbine fuel prices, were not met.
Most of the airlines plan to refund tickets to passengers for 18 August, if the government fails to hear them.
"The government understands the difficulties being faced by the aviation sector. However, the government does not support any move that will inconvenience the travelling public of the country. We advise the airlines to engage in a dialogue with the government," Patel said.
"The issue of tax on ATF is a state issue and the aviation ministry has been requesting the states for the last few years to see reason. The other issues primarily relate to the slowdown in the economy global and domestic and the impact of high prices of ATF in 08-09," he added.
