Ummid Assistant

Samsung sets up fund for poor kids' education

US varsity offers doctorate for education professionals

Welcome Guest! You are here: Home Business & Economy

Government rules out bailout to Kingfisher, more flights hit

Monday February 20, 2012 07:43:49 PM, IANS

New Delhi/Mumbai: Around 35 flights of Kingfisher Airlines were cancelled Monday, disrupting operations for third day in a row and the government queered the runway ruling out a bailout for the cash-strapped carrier. The airline was also asked to explain the reasons behind flight cancellations.

The airline is operating only 16 of its fleet of 64 planes and has cancelled more than 100 flights since Saturday. While its Kolkata centre is virtually shut down, the airline's international operation is in doldrums as flights to Kathmandu, Dhaka, Colombo and Bangkok had been affected.

Officials at the national capital's Indira Gandhi International (IGI) airport and Mumbai's Chhatrapati Shivaji International Airport told IANS that the cancellations had created major problems for passengers who had booked on the airline months in advance.

The Director General of Civil Aviation (DGCA) has asked other airlines to accommodate the stranded passengers.

More bad news came in from Civil Aviation Minister Ajit Singh who ruled out a bailout for the airline which saw its net loss mounting to Rs.444 crore in the third quarter of the current fiscal from Rs.254 crore suffered in the like quarter of 2010-11.

"Government is not going to give any bailout or ask the banks to bail out any private airline or any private industry for that matter," Civil aviation minister Ajit Singh told reporters here.

The airline has been relegated to fifth place in terms of market share of 12.1 percent.

Singh also blamed the crisis on the airline management for not paying its employees as a reason behind Saturday's flash strike in Kolkata leading to major disruptions.

"They did not give salary to their employees for many months. People went on strike in Kolkata. Naturally, the flights got cancelled," Singh said.

This is the second time in four months the airline has cancelled such a large number of flights without taking prior regulatory approvals. The aviation regulator has summoned the airline's chief executive Sanjay Aggarwal Tuesday to explain the reasons behind the crisis.

"We have asked for a report from them (Kingfisher Airlines). The airlines' CEO has been asked to appear before the director general tomorrow (Tuesday)," a senior official with the DGCA told IANS.

The regulator has ordered an inquiry into the large-scale cancellations.

Meanwhile, the airline said the prime reason behind the disruption was the sudden attachment of its bank accounts by the income tax (IT) department over unpaid service taxes and that they be unfrozen.

"This has severely affected our ability to make operational payments leading to the present curtailment. We are in dialogue with the tax authorities to agree a payment plan and get the bank accounts unfrozen at the earliest," a Kingfisher Airlines spokesperson said.

This is the second time since December that the airlines accounts were frozen by IT department.

"Employee salaries can be paid and the grounded aircraft can be recovered quicker once the bank accounts are unfrozen and the schedule restored on priority."

The airline added that it was in touch with the DGCA and would appear before it to submit details regarding cancellations and plans for restoration of a full schedule.









Home | Top of the Page


Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS






Top Stories

Fishermen's killing: Protests demanding arrest of ship captain

Cutting across political affiliations, various fishermen organisations in Kerala propose launching a protest, starting Tuesday, demanding   

Fishermen's killing: Two crewmen brought ashore, Italians told to cooperate

Italians who killed can't escape: Kerala CM


  Most Read

57 percent turnout in UP's fourth phase: Poll panel

The voter turnout in the fourth phase of Uttar Pradesh's assembly elections Sunday was recorded at 57 percent, the  

In a UP first, voters boycott poll for no development

Jordan condemns Israeli settlers' breaking into Al-Aqsa mosque

Jordan Sunday condemned breaking into Al-Aqsa mosque by Israeli settlers, calling on Arabs and Muslims to intervene to halt such violations, media reports said. "Jewish settlers, a Knesset member and several radical Israelis and police members stormed into Al-Aqsa mosque and stepped  


  News Pick

Kashmiri woman's 15-year wait for husband

Whenever a postman enters this village in Kupwara district of Kashmir, Jameela Rayees cannot stop herself from rushing to the door in anticipation. What she is waiting for is her passport, so that she can go to  

BJP manifesto promises Goa Lokayukta within 100 days

The Bharatiya Janata Party (BJP) will institute a Lokayukta in Goa within 100 days of coming to power, according to the party's poll manifesto released  

No woman candidate: Goa BJP says sorry

Indian Islamic centre launches 'Fatwa Phone'

Seeking answers to their queries about personal and family issues, Indian Muslims are turning to a new system of telephone calls and e-mails to reach out  


Picture of the Day

A month-long showcase, "Dawn Upon Delhi: Rise of a Capital", which opened at the NGMA late Monday evening, has now recreated the making of the city of Delhi from the Mutiny of 1857 to the present day with more than 250 rare documents. Part of this collection above is an artist's view of early 19th century Delhi.



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant



Science & Technology



About us




Government Schemes










Contact us




    Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2010 Awaz Multimedia & Publications. All rights reserved.