In a major development, the Director General of Civil Aviation (DGCA) has asked private airlines to refund cancelled tickets within 48 hours.

Earlier, ruling out any bailout, the Centre had asked private airlines to withdraw their call for suspending flights on August 18 and warned them of "appropriate action" if flight schedules are disrupted.

"The government reiterates its advice to private airlines against suspending operations on August 18," Civil Aviation Minister Praful Patel said in a statement.

Maintaining that state taxes on aviation turbine fuel had been an issue even before several present carriers came into existence, Patel said that the government cannot be expected to extend financial help to loss-making private carriers.

Patel, who has renewed his appeal to the private carriers for negotiations, also said the Directorate General of Civil Aviation (DGCA) could "take appropriate action" under its regulatory powers to protect passengers' interest.

Aviation Minister Praful Patel statement:

"The government reiterates its advice to private airlines against suspending operations on August 18. The government can't be expected to help private airlines financially. If required, the DGCA will take appropriate action under its regulatory powers to protect passenger interest. Air India will stand up to its national responsibility and will mount additional flights on the August 18 to minimize inconvenience to the public."