The Hindu : Front Page : Private airlines threaten to suspend flights on Aug. 18

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Private airlines threaten to suspend flights on Aug. 18

Special Correspondent

Mumbai: Private airlines have threatened to suspend operations on August 18 if the government does not come out with a bailout package for them.

The airlines, under the aegis of the Federation of Indian Airlines (FIA), said total losses for the private aviation sector were expected to be Rs. 10,000 crore in 2008-09. The aviation turbine fuel (ATF) taxes were unviable as the estimated airline levies stood at $250 million.

They said if the government did not cut fuel cost and other levies, they would be compelled to call off domestic operations indefinitely.

However, international operations would continue.

At a press conference organised by the FIA, both Vijay Mallya, Chairman, Kingfisher Airlines, and Naresh Goyal, Chairman, Jet Airways, expressed their disillusionment with the government for not coming to their rescue.

FIA Secretary-General Anil Baijal said member airlines had run up losses of $2 billion, and unless the government helped them, they would not be able to sustain operations any further.

According to Mr. Mallya, the private airlines would refund the money for the bookings made for August 18.

Mr. Goyal said this was not an ultimatum to the government but only a way of drawing its attention to the plight of the industry.

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