India's private carriers threaten not to fly from Aug 18 : India

Mumbai, July 31 - The Federation of Indian Airlines -, a representative body of private carriers, has sought a bailout package to tide over the current financial crisis and threatened that its members may suspend domestic operations from Aug 18.

Addressing a press conference here, FIA secretary general Anil Baijal said that member airlines had accumulated losses worth a whopping $2 billion, and unless the government initiates action to help them overcome the crisis they will not be able to sustain operations any further.

Air India was not part of Friday's discussions.

'We are bleeding. Everybody is bleeding. Giving a helping hand to the airline industry is done all over the world,' said Naresh Goyal, chairman of Jet Airways and a founding member of the federation.

'We may have to suspend operations indefinitely,' added Vijay Mallya, chairman of Kingfisher Airlines, while adding that international operations of member carriers will, however, continue.

Among the various demands from the federation are: Direction to oil retailers to sell aviation fuel cheaper and reduction in airport charges, which they say has ballooned ever since the entry of private players.

'Aviation fuel is among the highest in the world,' said Baijal, adding this expenditure alone added 30-40 percent of an airline's operational costs.

The federation secretary general also said member carriers were already burdened by a low fares and a sharp dip in passenger traffic, and that in such difficult times, they were naturally looking for help from the government.

'This is a well considered decision of private carriers,' added Baijal.

He said the carriers would take whatever logistical action was needed as the result of suspension of operations, like refund of money for tickets already booked.

Thus far, the civil aviation ministry has ruled out any bailout package for the aviation industry, even though moves are afoot to help the national carrier tide over one of its worst crises.