All Private Airlines Threaten Not To Fly From August 18

[savramesh 37]

Source

The Federation of Indian Airlines (FIA), a representative body of private carriers, has sought a bailout package to tide over the current financial crisis and threatened that its members may suspend domestic operations from August 18.

Addressing a press conference in Mumbai, FIA secretary general Anil Baijal said that member airlines had accumulated losses worth a whopping $2 billion, and unless the government initiates action to help them overcome the crisis they will not be able to sustain operations any further. Air India was not part of Friday's discussions.

"We are bleeding. Everybody is bleeding. Giving a helping hand to the airline industry is done all over the world," said Naresh Goyal, chairman of Jet Airways and a founding member of the federation.

"We may have to suspend operations indefinitely," added Vijay Mallya, chairman of Kingfisher Airlines, while adding that international operations of member carriers will, however, continue.

Among the various demands from the federation are: Direction to oil retailers to sell aviation fuel cheaper and reduction in airport charges, which they say has ballooned ever since the entry of private players.

"Aviation fuel is among the highest in the world," said Baijal, adding this expenditure alone added 30-40 percent of an airline's operational costs.

The federation secretary general also said member carriers were already burdened by a low fares and a sharp dip in passenger traffic, and that in such difficult times, they were naturally looking for help from the government.

"This is a well considered decision of private carriers," added Baijal.

He said the carriers would take whatever logistical action was needed as the result of suspension of operations, like refund of money for tickets already booked.

Thus far, the civil aviation ministry has ruled out any bailout package for the aviation industry, even though moves are afoot to help the national carrier tide over one of its worst crises.

[Greens 21]

If government decides to bailout these sharks, than it has bailout millions of credit card defaulters, personal loan defaulters.... and etc.,,,

[savramesh 37]

Airlines call off August 18 strike

Source

MUMBAI: The Union government's tough talk appears to have hit home with private airlines that had called for suspending domestic flights for a day. About 48 hours after threatening a strike, the Federation of Indian Airlines (FIA) ate crow on Sunday to say that all private airlines would operate as scheduled on August 18.

A statement issued late in the evening by a GoAir spokesperson on behalf of FIA said it decided to "put on hold its decision to suspend flights on August 18...in view of the agitated public sentiment, the potential inconvenience to passengers, and the government's willingness to enter into dialogue''.

The government has never shown an unwillingness to sit across the table to thrash out the issues: reduction in airport charges and sales tax on ATF. "The FIA hopes that constructive dialogue with government will lead to redressal of problems,'' the statement said.

The first signs of the possibility of the strike falling through came on Saturday evening when a low-cost airline, IndiGo, pulled out of the protest saying it would continue with its operations on August 18. At 7.30pm on Sunday, Spice Jet followed suit. By 8pm, FIA announced that the rest of the airlines  Kingfisher, Jet, Spice and Go Air  too had deferred their decision to suspend flights on August 18.

Although FIA had to call off its decision without any assurance from the government, it did succeed in taking the issues plaguing the airline industry to the public. The strike threat got ample media focus which made it possible for FIA to bring fresh focus to protracted issues like airport charges and sales tax on ATF.

"From day one, it was apparent that low-cost airlines (LCC) would pull out of this as they are not in such dire financial straits as full-fare carriers are,'' said an aviation analyst. The first signs of retreat came barely 24 hours after FIA made the adrenaline-charged announcement on Friday last. All private airlines continued to accept bookings for August 18; but the government took no chances.

On Saturday, civil aviation minister Praful Patel warned the airlines against holding the country to ransom even as Air India chalked out plans to mount additional flights on its B-747 jumbos on August 18 and the Directorate General of Civil Aviation (DGCA) cracked the whip warning airlines not to flout the provisions of the permit that allows them to operate scheduled flights. And sure enough, IndiGo announced it was no longer part of the FIA strike.

Edited August 3, 2009 by savramesh