Civil Aviation minister Ajit Singh has precise flatly stated that there is no question of the government bailing out Kingfisher Airlines.
The government will not and cannot bail out Kingfisher or any other private airline though we would not want any airline to close down too. He was speaking to journalists at the India Aviation 2012 in Hyderabad. The government, he says, will not bail out private companies or ask banks to lend to them. Later, E K Bharat Bhushan, Director General of Civil Aviation pointed that the regulator has been looking for the improvement at Kingfisher and said: We have been reporting to the government on a regular basis.
Deal with Kingfisher
To deal with the current situation, he said the government has taken measures like allowing FDI and allowing airlines to cut operational costs by allowing them to import aviation fuel. He said, we are allowing 100 per cent FDI in Greenfield airports under the automatic route to facilitate world-class airports in the country. An appropriate economic regulatory framework for future airports is also being worked out to attract investment and ensure their viability. Also, he said, to bridge the shortage of skilled personnel in the aviation sector, we propose to set up a full-fledged aviation university. The project will ensure a steady supply of trained pilots and other skilled personnel in aviation sector. That is not all. He says, his ministry is formulating an Air Cargo Promotion Policy, which will be brought forward for consultation.
The project will ensure a steady supply of trained pilots and other skilled personnel in aviation sector. That is not all. He says, his ministry is formulating an Air Cargo Promotion Policy, which will be brought forward for consultation. Nevertheless, referring to the global markets, he said, the global economy faced rough weather in 2011 and the aviation industry also felt the tremors. As per estimates, cargo markets worldwide contracted by 0.7 per cent. Growth in demand lagged behind the increase in capacity for both passenger and cargo segments putting downward pressure on load and yields.