Civil Aviation Minister Vayalar Ravi has ruled out any bailout package for the ailing Kingfisher Airlines, but said efforts would be made to help the aviation industry.
Asked whether the government had decided on allowing FDI in India, Ravi said, “It is not a matter to be decided in a day. The proposal may come and then it will be considered.”
Kingfisher promoter Vijay Mallya is making a strong pitch for allowing foreign airlines to pick up stakes in Indian carriers.
The minister said he has not yet met Prime Minister Manmohan Singh to discuss ways to bail out Kingfisher and the aviation industry.
CPM general secretary Prakash Karat on Sunday opposed any bailout package for the Kingfisher Airlines and a change in the FDI by way of allowing foreign airlines investing in Indian airlines.
Karat said if the prime minister wants to help the Kingfisher it should not be done at the expense of the public money.
The Bharatiya Janata Party (BJP) also asked the government to spell out its policy on FDI in the aviation sector. The BJP has already opposed any bailout package to the Mallaya-owned company.
Bajaj Auto chief Rahul Bajaj said the private sector should not be bailed out by the government and “those who die must die.”
The industrialist made a categorical statement close to Prime Minister Manmohan Singh’s comment that his government would explore ways to help the private carrier.
The cash-strapped airline cancelled 40 more flights on Sunday taking the total number of cancelled services to around 250 flights in a week.