Govt cracks down,one airline pulls out,others soften their stand

With the government cracking the whip on private airlines,the Federation of Indian Airlines (FIA),the representative body of 10 scheduled carriers...

With the government cracking the whip on private airlines,the Federation of Indian Airlines (FIA),the representative body of 10 scheduled carriers,said today that it was willing to reconsider the decision to suspend domestic operations on August 18 if its difficulties are addressed. Meanwhile,budget carrier IndiGo pulled out of the strike,saying it would operate as usual.

Seeking a dialogue with the government,the airlines body said in an official statement today that members of FIA do not wish to burden the government with such demands (referring to the bailout).

Announcing the decision to ignore the strike call,IndiGo Airlines President Aditya Ghosh said they appreciated the sentiments expressed by the Ministry of Civil Aviation that it understands the problems faced by the Indian aviation industry and that we should all engage in a dialogue with the Ministry.

Earlier in the day,taking serious note of the proposed strike,the Directorate General of Civil Aviation (DGCA),the airlines regulatory body,sought reasons for it and issued a notice to all participating airlines to refund the full ticket amount to passengers who have booked domestic air travel on August 18. The airlines were told to report compliance within the next two days.

If the airlines fail to comply with the deadline,we will invoke relevant provisions of law and take necessary legal action after reviewing the situation on Monday, DGCA Director General Nasim Zaidi told The Sunday Express.

Meanwhile,Civil Aviation Minister Praful Patel made it clear that the government cannot be expected to provide financial help to the loss-making private carriers. The tax on aviation fuel has been an issue since much before many of the present airlines came into existence, Patel said,and warned of appropriate action by the DGCA under its regulatory powers.

The airlines acknowledged the receipt of the DGCA notice and said they would comply with the directive. However,they insisted that table talks will be the best way to move forward in the current standoff,and said they had been misunderstood.

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The purpose of the token one-day strike by FIA members is to solve the problem and draw the attention of the government to the problems being faced by the airlines. It is difficult for carriers to function under the current situation, Jet Airways executive director Saroj Dutta said.

On the issue of ticket refunds,Dutta added,We will respond within the time limit set by DGCA. The modalities for refunding the ticket costs will happen in due course of time.

The airline industry is likely to post losses of around Rs 10,000 crore for the fiscal 2008-09. Meanwhile,travel agents associations maintained that they have not received any official communication from airlines on the matter.

Yesterday,FIA had threatened to suspend domestic operations on August 18,demanding an immediate relief in form of a slew of benefits for the crisis-hit aviation industry. The government had condemned the decision,saying that it does not support any move that causes inconvenience to the travelling public.