Kingfisher Airlines (IT), which is operating fewer than half of its fleet of 64 aircraft due to serious financial problems , will not be able to count on the Indian government for a monetary bailout, civil aviation minister Ajit Singh strongly stated.
According to The Times of India, Singh said that IT founder and chairman Vijay Mallya "knows that Air India is a government concern" and therefore can receive government funds when in trouble, whereas IT is privately held and "cannot" expect the same kind of assistance.
It will be up to India's banks to decide whether to rescue IT, he said. "Government is not going to interfere in it," Singh stated. "Banks … have to decide on the basis of [IT's] business plan [whether to lend]. If they are satisfied with the business plan, they can lend money."
Article Source : ATW Daily News
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