Sunday, November 13, 2011

PM to speak with Civil avi min to find a solution to Kingfisher crisis

Prime Minister Manmohan Singh has said that he will raise the issue of Kingfisher crisis with the civil aviation minister and further said that the issue needs to be resolved amicably in the national interest.

Crisis-hit Kingfisher airlines today questioned whether it was the private carrier's duty to fly on loss-making routes, even as Government said there is no move to bail out the airline which has cancelled 210 flights in six days.
Kingfisher owner Vijay Mallya while blaming the system of airlines in the country being overtaxed and overcharged also said governments abroad have "gone out of the way" to support air carriers and connectivity.
With 50 more flights being cancelled, the beleaguered airline has cancelled 210 flights since Monday putting hundreds of passengers to inconvenience.
"This is to clarify that no such bailout package is pending before the Government nor has been proposed by Ministry of Civil Aviation for the Kingfisher Airlines," Civil Aviation Minister Vayalar Ravi said in a statement.
Ravi's clarification came aagainst the backdrop of Opposition flak over his statement that he would talk to the Finance Ministry to see whether banks and oil firms could provide some relief to the cash-strapped airline.
Kingfisher CEO Sanjay Aggarwal said the airline has not made any bailout request to the government but admitted "we have only asked our banks for an increase in limits due to significant increase in operating costs caused by increase in fuel prices and rupee devaluation."

No comments:

Post a Comment