Indian airlines will stop domestic flights on August 18 in demand of bailout

On July 31, 2009, Indian private airlines announced to suspend domestic operations on August 18 in demand of bailout from the government. If their demands are not met then flights will be suspended for indefinite time period. Private airlines are saying that due to huge losses, they would not able to continue its business. The airlines are not asking for money as bailout but demanding to lower ATF tax on fuel and airport taxes.

In Friday afternoon, Federation of Indian Airlines (FIA), the lobby organization representing Indian private airlines, held a meeting which was attended by Naresh Goyal of Jet Airways, Vijay Mallya of Kingfisher Airlines and other members of FIA. The state-run Air India and Paramount Airways did not participate in the meeting. After finishing the meeting, Anil Baijal, Secretary General, Federation of Indian Airlines, read out a statement which said that the airlines industry incurred losses worth Rs.10,000 crore in FY 2008-2009. ATF sales tax, airport charges, devaluation of the Indian rupee, economic recession and terrorist attacks were some of the major causes behind these losses.

However, Indian aviation Praful Patel said that the government would not support any kind of activities that will create problem for people. Such movement is first in the history of the Indian airlines industry and if it happens 12,000 domestic flights including those of Kingfisher, Kingfisher Red, Jet Airways, Jetlite, IndiGo, Go Air and Spice Jet will not fly on August 18. There will be only 300 operating flights of Air India.

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