BUSINESS

No bail out for airlines, FDI an option: Patel

Source:PTI
February 20, 2009 17:02 IST

Civil aviation minister Praful Patel on Friday ruled out any bail out package to domestic private air carriers but felt FDI could be one of the options to meet funding requirements.

"I don't think that at this stage any direct financial concessions or assistance is possible (to domestic private air carriers) . . . FDI could be one of the options," Patel said at a function in Mumbai.

However, Patel made it clear the government has not taken any final decision in allowing FDI in domestic private airlines.

"No decision has been taken on FDI (in domestic airlines). The proposal is still under examination," Patel said.

The government had provided some relief to domestic airlines when ATF prices had sky-rocketed, Patel said, adding 'it would not be possible now.'

Patel said the government will come down heavily if there was any cartelisation on air fares.

The government was examining the proposal of the Mumbai International Airport Limited for levying airport development fee, Patel said.

MIAl has proposed that it may be allowed to levy Rs 350 per domestic passenger and Rs 1,300 per international passenger to meet its funding requirements.

Source: PTI
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