Kingfisher Airlines not to be bailed out by the government, says Ajit Singh; DGCA summons officials

20 FEB, 2012, 11.36AM IST, PTI 

NEW DELHI: Kingfisher's CEO and top officials were summoned today by the DGCA to explain the large-scale disruptions in the operations of the cash-strapped carrier even as government ruled out any bailout. 

The Directorate General of Civil Aviation (DGCA) has asked senior officials of the airlines, including CEOSanjay Aggarwal, to appear before it tomorrow to explain the cancellations. 

More than 20 flights were cancelled today. About 80 flights of the carrier from six metro cities did not operate yesterday leaving hundreds of passengers stranded. 

The ailing carrier had till late last evening failed to file a report on the number of flights it had cancelled since Friday night to the DGCA. 

Civil Aviation Minister Ajit Singh made it clear that government will not bailout the airline. 

"No, government is not going to have any bailout," the Minister told reporters, adding, "Government is not going to ask banks or private industry for that matter". 

"Recently government had seized their bank accounts also. So our first concern is that flights which are ongoing, passenger safety should not be compromised and then let us see what reply they give. DGCA is inquiring into it," Singh said. 

He said Kingfisher is facing several financial problems. "Day before yesterday, as they did not give salary to their employees for many months, people went on strike in Kolkata. Naturally, the flights got cancelled," he said. 

DGCA's role, he said, was to see that there are no questions on passenger safety. 

Kingfisher was holding talks with banks and they have given their business plan. 

Government has made some changes recently including in respect of aviation fuel policy whereby airlines could directly import jet fuel, Singh noted. 

The Minister said Kingfisher's business plan maybe viable in this respect but it was for the banks to decide how much money should be given. 

are bound to inform us when they cut their schedule. But they have not done so." 

The DGCA has gathered information from all centres across the country of the cancellation and major delays of Kingfisher services. Based on this information, the aviation regulator has decided to take action under rules. 

Under Rule 140(A) of the Aircraft Rules, 1937, operators require to have prior approval of DGCA to curtail their flight schedules.