Minister for Civil
Aviation Ajit Singh on Tuesday ruled out bailout of Kingfisher Airlines.
“We are concerned that
assets are tied up and lots of jobs are at stake, but a bailout is neither
possible nor being considered,” he told reporters after a meeting of the
Parliamentary Consultative Committee (PCC) of the Ministry. “It is for the
owners of the airline to mobilise resources and make the airline fully
operational.”
Confirming that the
Directorate General of Civil Aviation (DGCA) is “doing an intensive audit” of
Kingfisher’s fleet, he said, “As long as they are flying safe and they have a
certain minimum amount of equity, the Government cannot close it down.”
Mr. Singh said a bill
to “strengthen and replace” the DGCA would be placed before Parliament in the
winter session.
The cost of flying was
high in India, mainly because of the high cost of aviation turbine fuel, which
accounted for about 45 per cent of the operational cost of airlines.
http://www.thehindu.com/todays-paper/tp-national/article3651510.ece
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