Ajit Singh against 'bailing out' private airlines, but helps Air India

New Delhi, Jan 11 (ANI): While accepting that the aviation sector was reeling under financial crunch, Civil Aviation Minister Ajit Singh on Wednesday said that government would not bail out the private airlines.

Talking to reporters here, Singh said that since Air India is a national carrier, it is the responsibility of the government to help it to overcome the crisis.

"Unless they (banks) are satisfied with the business plan, how can they lend money and government is in no position and it's not going to bail out a private enterprise. Air India as I said is the government's responsibility, rest companies have to, depend they have to modify their business plan, they have to see how they can be profitable, they have to satisfy banks, then only they will get money," he added.

Singh also hit out at the national carrier, and added that there was need for Air India to devise new strategies.

"The Air India will have to become competitive; they will have to restructure their costs in line with the industry as a whole because government cannot keep on pouring money there also. There is alternative usage of money," said Singh.

Kingfisher and Air India have been negotiating with banks for further cushion to ease their debt burden and for more working capital. Both firms have undergone debt restructuring.

Singh further said that despite the financial crunch, the safety of the passengers would not be compromised.

"There are problems; this industry has been growing so fast over last few years that there is shortage of pilots, there is shortage of trainers, stewards also have not been trained properly, so these are financial stress related problems, but as far as passenger safety in the terms of jeopardising the flight, there is no such fear," said Singh.

On being asked about the government's plan to allow FDI in aviation sector, Singh said a Group of Ministers (GoM) will soon meet and the final decision will be taken on it.

"Committee of secretaries have recommended to increase it, but that Group of Ministers have to meet, it's a informal Group of Ministers and they will decide on that and finally cabinet has to take a view," he added. (ANI)