Ajit Singh rules out bailout of Kingfisher


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.

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Printable version | Oct 19, 2017 11:41:27 PM |