The ailing airlines industry is apparently asking for what the government cannot afford.
The carriers are asking for a bail out package projecting an aggregated loss of Rs 10000 crore by next year.
After the government reduced excise duty and waived off duty, price of aviation turbine fuel (ATF) fell to Rs 38,163.23 per kl from Rs 71,028.26 per kl with the oil companies revising downwards five times in three months.
Yet their dues with oil companies and airports have not come down, leave alone passing over the benefit of ATF price reduction to the passengers.
In response to prime minister’s office (PMO) appeal for not to lay off the employees, the airlines are bargaining hard with the government.
However, the government must not allow promoters of the carriers to take the industry for ransom while it is duty to rush to industry’s help. After all these are not poor bearing the brunt of the economic recession. Non other than the king of good times Vijaya Maly tops the list of defaulters.
The government can buy more shares in the airlines instead of just pumping money in to them. The strict regulation must follow this act.
