The woes of the domestic civil aviation industry will soon land at the doorsteps of the Prime Minister, Dr Manmohan Singh.

The Ministry of Civil Aviation is to soon hold discussions with the Prime Minister on the condition of the industry.

The move comes in the backdrop of the domestic aviation industry expecting to report a loss of Rs 3,500 crore during the first six months of the current fiscal, according to estimates of the Federation of Indian Airlines.

Meanwhile, the cash-strapped Kingfisher Airlines has approached the Government seeking a helping hand in restructuring its finances.

The airline promoter has met with the Ministers for Finance and Civil Aviation and has sought about Rs 300 crore of funded limit and a similar amount to secure LCs as well as bank guarantees. It may be recalled that the Government recently agreed to provide Rs 23,000 crore as equity to Air India over a 10-year period and also provided concessions for the aviation turbine fuel that the airline uplifts.

Meanwhile, the airline CEO, Mr Sanjay Aggarwal, in a statement, said no bailout request has been made to the Government.

“We have only asked our lenders for an increase in limits, due to significant increase in operating costs on account of hike in fuel prices and rupee depreciation,” he said.

The Minister for Civil Aviation, Mr Vayalar Ravi, has spoken to the Finance Minister, Mr Pranab Mukherjee, to provide some relief to the airline.

Hindu Business Line