Mumbai: India's private airlines have joined hands and said they will stop flying unless the government comes forward with a bailout.
To begin with all private airlines will not operate for a day on the August 18 and refunds will be given to all those passengers who have booked to travel on that day.
"The losses we are suffering are unsustainable," said Vijay Mallya, chairman, UB Group.
"Everyone in the industry is bleeding including public sector," said Naresh Goyal, Chairman, Jet Airways.
And with that private domestic airlines declared war against the Aviation Ministry. At least five scheduled operators, Jet, Kingfisher, Indigo, Spicejet and Goair will suspend operations for a day.
"We have decided not to operate nationwide services on 18th August," said Anil Baijal, Secretary General, Federation of Indian Airlines.
What private airlines want:
- Reduction in jet fuel price
- Rationalisation of airport charges imposed by operators
In the last months airlines have been hit, Kingfisher had to delay salaries, jobs have been lost even though when jet sacked its employees a nationwide uproar and intervention by the civil aviation minister meant they had to retract.
Aviation Minister Praful Patel is currently in Mauritius but in response he said:
"The government understands the problem but does not support any move that will inconvenience passengers. We advise the airlines to engage in a dialogue. Tax on aviation turbine fuel is a state issue and the aviation ministry has been requesting state governments to see reason. The other issue relates to global slowdown and the impact of high aviation turbine fuel in 2008-09. Air India will not participate in this decision of the private airlines and will offer additional services on August 18 to reduce any inconvenience to people."
At a time, when Air India is likely to get a huge bail out package, politically at least the mood seems to be against a similar package for private airlines bailout.
Here's what Praful Patel told NDTV just last month:
"Airlines have no money in their pockets, can't expect government to find the money. Promoters, especially the ones who cry the most, are very big people; they should find the money themselves instead of asking government for help."
A day's suspension of service will mean tremendous inconvenience to thousands of passengers but private airlines say with combined total losses of about Rs 10,000 crores suspension of operations for a day is the only way to be heard.