Aviation Industry In India In Dumps

Private airlines on Friday sought bailout from the government and have threatened that they could suspend flights on August 18. The airlines have further threatened to call off domestic operations completely if the government does not give them a hearing.

According to FIA the total loss for aviation was at Rs 10,000 crore for 08-09. The ATF taxes are unviable and the estimated airline levies stand at $250 million. The government on Thursday said leading airlines in the country had suffered losses over Rs 2,44,483.7 lakh during the 2007-08 fiscal.

According to Vijay Mallya, airlines will refund the money for the passengers who have bookings for August 18. The international operations however, will not be impacted.

According to Jet Airways' Naresh Goel, this is not an ultimatum to the government but only a way of drawing government's attention to the poor plight of the airline industry. "The operations are not sustainable any more and we have been asking for government's help for a long time now," added Goel.

Kingfisher Airlines had warned its 6,000 employees of a delay in salary payment. In an email, its executive vice-president Hitesh Patel had asked its employees to be prepared for delayed salaries. Cash-strapped national carrier Air India is also mulling canceling delivery of 6 Boeing 777 long-haul aircraft. The government meanwhile has said that any financial help would be extended only if the carrier undertakes restructuring exercise and submits plans to return to profitability.