Civil Aviation Minister Ajit Singh said the government could recommend measures to ensure safety.
Five of India's six main airlines have been reporting losses for the past few years. They have been particularly badly hit by fuel price rises.
"There is no case to let airlines shut down for financial or safety reasons. We can recommend measures to ensure safety," said Mr Singh.
"We will not cancel licences because even one airline winding up has repercussions for the entire industry.
"World over, airlines are financially impacted. It is a rough patch for domestic carriers and we have to provide help to the sector," he said.
The minister said the government would ensure that the carriers got fuel at competitive prices and that working capital was made available to them.
On Thursday, Bharat Bhushan, director general of civil aviation, met executives from Kingfisher and Air India Express in Mumbai.
"We have met all airlines in the past few weeks on the issue of financial stress. Kingfisher was called in today. There is no threat of closing any airline. All airlines are under stress," said Bhushan"We have been in touch with all the airlines like Spicejet, Jet Airways and Indigo and we are ensuring that safety norms are ensured. We have asked them to come back in a few days and tell us what measures they will be taking," added Bhushan after meeting top executives of Kingfisher and Air India Express.
The DGCA has been conducting safety audits to check if airlines under financial stress were cutting corners on adhering to various safety regulations as per a report in ET.
The watchdog has asked Kingfisher to come back by Monday with details of the safety measures taken by the airline.
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