Monday, January 9, 2012

India To Support Struggling Airline Sector - Report

India's federal civil aviation minister Ajit Singh has said that the government will not cancel licenses of cash-strapped carriers on safety concerns, the Economic Times reported on Friday.

The comments come as India's aviation regulator on Thursday demanded assurances from Kingfisher Airlines and the budget arm of Air India that their financial problems would not affect safety.

The Directorate General of Civil Aviation also told airlines to offer a timeline to put in place measures to tackle their financial problems.

"There is no case to let airlines shut down for financial or safety reasons. We can recommend measures to ensure safety," Singh, who took charge in December, was quoted as saying.

"World over, airlines are financially impacted. It is a rough patch for domestic carriers and we have to provide help to the sector."

A government report last month said the total debt of India's airlines are expected to rise to USD$20 billion in the 2011/12 year as they struggle with rising oil prices, high sales taxes on jet fuel and below-cost pricing driven by fierce competition.

Source: http://news.airwise.com/story/view/1325852980.html

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