In the wake of allegations made by Rahul Bhatia, Promoter, Indigo Airlines, that the Government is messing with the aviation policies for a select few, the Ministry of Civil Aviation has strongly denied any such hapenings.
The Government has stated that the Ministry of Civil Aviation is performing its functions in an objective, fair and transparent manner without discrimination against any airlines. It is the policy of the Government to promote civil aviation sector in the country by making the airlines financially viable and the air travel affordable for the people.
They stressed "There are no regulatory frameworks anywhere in the world allowing cancellation of the license of airlines merely for failing to pay salaries to the staff. The comments of Bhatia in this regard are uncalled for and baseless".
They clarified that the Government being owner of the Air India is well within its rights to promote the national carrier and prepare it for competition. Air India was highly under-capitalized at the time of merger in 2007 and has therefore been provided support in the form of equity to correct the skewed debt equity ratio. In fact the Government has not subsidized Air India. Moreover, the Government has stipulated stringent performance related milestones for Air India and has also established an oversight committee to ensure that these milestones are achieved.
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