Jan 6, 2012

with five out of six main Indian airlines reporting losses for past few years, government stands by airlines

with five out of six main Indian airlines reporting losses for the past few years, minister Ajit Singh stands by airlines

India's government says it will stand by ailing airlines amid fears financial problems may affect their safety.

Five of India's six main airlines have been reporting losses for the past few years. They have been particularly badly hit by fuel price rises.

"There is no case to let airlines shut down for financial or safety reasons. We can recommend measures to ensure safety," Mr Singh, who took charge of the ministry in December, told the Economic Times.

The minister said the government would ensure that the carriers got fuel at competitive prices and that working capital was made available to them.

He denied any carrier was in danger of having its licence cancelled, after the internal audit report was quoted as saying this might be considered.



Sources:
BBC News

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