Efficient operations and financial performance are individual responsibilities of air carriers, and the government cannot interfere in their day-to-day operations, Civil Aviation Minister Suresh Prabhu said today amid the Jet Airways crisis.
In view of intense competition, rising costs, shortage of pilots and grounding of planes hurting many domestic carriers, Mr Prabhu also said the government has been constantly responding to industry conditions and cited measures taken, including reduction in central excise duty on jet fuel to 11 to 14 per cent.
Cash-strapped Jet Airways has been forced to ground planes, cancel flights and delay payments, including salaries to pilots, while Air India continues to grapple with financial woes. On March 25, the board of ailing Jet Airways cleared a debt resolution plan whereby lenders would take control of the carrier.
Against this backdrop, the Civil Aviation minister said that each airline prepares its own business plan on the basis of its own market assessment and financial resources.
"Based on its business plan, the efficient operations and financial performance are the responsibilities of each individual airline and its shareholders. However, the government has constantly been responding to industry conditions and undertaking specific measures to
Mr Prabhu added that a revival plan has been prepared for Air India, focusing on various aspects, including a comprehensive financial package and transferring non-core debt and assets to a special purpose vehicle.
The revival plan also focuses on higher level of operational efficiency by strengthening management and implementing best practice business processes and robust organisational and governance reforms, he added.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.