No move to bail out Kingfisher: Govt

Crisis-hit Kingfisher Airlines on Saturdayquestioned whether it was the private carrier's duty to fly on loss-makingroutes, even as the government said there is no move to bail out the airlinewhich has cancelled 210 flights in six days.

Kingfisher owner Vijay Mallya while blaming the system ofairlines in the country being overtaxed and overcharged also said governmentsabroad have "gone out of the way" to support air carriers andconnectivity.

Kingfisher hits an air pocket

With 50 more flights being cancelled, the beleagueredairline has cancelled 210 flights since Monday putting hundreds of passengersto inconvenience.

"This is to clarify that no such bailout package ispending before the Government nor has been proposed by Ministry of CivilAviation for the Kingfisher Airlines," Civil Aviation Minister VayalarRavi said in a statement.

Ravi's clarification came against the backdrop of Oppositionflak over his statement that he would talk to the Finance Ministry to seewhether banks and oil firms could provide some relief to the cash-strappedairline.

On the other hand, Mallya, who had earlier this week soughtgovernment help, tweeted: "Every government has gone out of the way tosupport airlines and connectivity. In India airlines are overtaxed andovercharged. Wonder why?"

In another tweet, he posed: "Is it Kingfisher's duty 2fly on loss making routes when state governments tax heavily? Or should v befinancially prudent n fly profitably".

Official sources said while no bailout was being given bythe government to Kingfisher, it was free to approach the concerned ministrieson issues concerning soft loans and for restoration of the credit line from oilPSUs for the uplift of jet fuel.

Kingfisher CEO Sanjay Aggarwal said the airline has not madeany bailout request to the government but admitted "we have only asked ourbanks for an increase in limits due to significant increase in operating costscaused by increase in fuel prices and rupee devaluation."