New Delhi: 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.
However, international flights will continue to operate on August 18.
This announcement came at a meeting that saw the biggest names of the aviation industry come together, with the exception of the public carrier Air India.
Kingfisher Airlines chief Vijay Mallya said rapidly rising costs of operations were no longer sustainable and if the government didn't respond private airlines would have to suspend domestic operations indefinitely.
Jet Airways chief Naresh Goyal who also attended the meeting said that it was a genuine demand.
"There's no ultimatum, it's a request. Our problems are genuine as all airlines are bleeding, including the public sector," said Naresh Goyal.
According to FIA the total loss for aviation was at Rs 10,000 crore for 2008-09. The ATF taxes are unviable and the estimated airline levies stand at $250 million.
Reacting to the development, Civil Aviation Minister Praful Patel said," We advise airlines to engage in dialogue." "We do not support any move that will inconvenience passengers," he said, adding, "Air India will not participate in august 18 strike." Air India will provide extra services on August 18, the minister said.
Pranab reacts
Hours after private airlines announced suspending domestic flights on August 18, Finance Minister Pranab Mukherjee said he would talk to his counterpart in the Civil Aviation Ministry about the matter.
"I will talk to the Civil Aviation Minister (Praful Patel)," Mukherjee told reporters when asked about the proposed strike. (PTI)