Govt hints at bailout package for airlines

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Hyderabad, October 15: : Against the backdrop of airline industry's demand for a Rs 4,750 crore bailout package, Civil Aviation Minister Praful Patel on Wednesday expressed disappointment over the approach of some ministries on sops for the sector.

"We need a consensus," he said while regretting that "many departments are not taking a positive approach."

Taxes on ATF and charges for aviation services could be eased to help airlines fly out of the crisis fuelled by high jet fuel costs and the world economic slowdown, he said. But the government is awaiting the recommendations of an official panel in this regard.

"It is a tough time for the entire aviation industry worldwide... Government is sensitive to the problem... I have already given (the Prime Minister) an overall picture... after which a committee was constituted. But its recommendation will take sometime," he told reporters here.

Airlines, both private and state-owned that are already facing high fuel costs, are now reeling under the effects of the global financial crisis with drop in premium air traveler numbers.

"We can reduce fuel bills by cutting taxes or ask oil companies to cut base price for airline industry, landing, parking and route navigation charges could also be reduced for a small period of time," said Patel, who was here for the India Aviation-2008, civil aviation expo.

The airlines have sought a bailout package worth Rs 4,750 crore to tide over the crisis spawned by fuel costs and poor load factor.