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'Kingfisher should satisfy with their operational, financial plan'




Published by: Shobhit Kalra
Published on: Tue, 04 Dec 2012 at 12:07 IST
'Kingfisher should satisfy with their operational, financial plan'
New Delhi: Saying that the government will not interfere while the airline firms decide the air fares, the Aviation Minister Ajit Singh, on Tuesday, asked firms to keep transparency in the mechanism on which the fares are set. Minister said that let the passengers know the mechanism adopted by the airline companies.

Singh said, "What we are trying to do is make the system deciding the fares transparent. Public should know what is the bucket system and the range they have given should be reasonable."

Air fares are basically decided on two prime factors that constitute aviation turbine fuel (ATF) and charges incurred on the airport. Rather, ATF alone requires 40 percent of the running cost of airlines.

Singh further said that government has announced a wave off for country's national carrier Air India while the dues worth Rs 4,200 crore will be cleared by the end of this financial year.

Meanwhile talking about the issue of dues for the private airline owners, Singh said that it is the matter of fuel firms and aviation companies and hence they will resolve it by themselves.

Over Kingfisher Airlines shutting down its operations, Singh reportedly said, "DGCA (Directorate General of Civil Aviation) has made it very clear that in order to allow them to fly again, they have to satisfy with their operational and financial plan. DGCA's concern is that there should be no safety problem. They should be able to adhere to schedule given."

Debt ridden Kingfisher Airline has to pay huge sums to employees and also to various agencies and speaking on the same Singh said, "There will be a lot of collateral damage as you are saying if Kingfisher Airlines doesn't fly."

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