No Government Bail-out For Cash-strapped Kingfisher Airlines

[bonguking]

Is Kingfisher, India's second largest private airline, going the Air India way?

Cash-strapped Kingfisher airlines that has been in the news for numerous flight cancellations in the past few days, has now approached the government for help. Sources said the airline has sought Finance Ministry's help on its loans.

Aviation Minister Vayalar Ravi today said that the government might speak to banks for Kingfisher Airlines, but a debt recast like was done for Air India was not possible. Mr Ravi said he had spoken to Finance Minister Pranab Mukherjee and Oil Minister Jaipal Reddy after Mr Mallya spoke to him seeking help.

Mr Ravi said, "There is no package and government of India has no plans for a package. He (Vijay Mallya) did not ask for a package. But this is one of the major airlines and the government did not want to see it close down. I hope the banks will come forward. We will talk to them."


Airline owner Vijaya Mallya also spoke to the Directorate General of Civil Aviation (DGCA) yesterday. Mr Mallya reportedly assured the DGCA that the airline is working out a contingency plan to minimize passenger inconvenience in the coming months.

[ROUDRAM]

good , Govt shoudl not interfere in private economy. let them fail and learn the lesson a hard way