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Govt Bailout For Kingfisher Defies Logic, Says Spicejet Chief

New Delhi, Nov 14: Amid the debate over bailout for private carrier Kingfisher Airlines, SpiceJet chief Neil Mills today said the government should not use taxpayers' money to revive a private sector company.“It is the

PTI [ Updated: November 14, 2011 18:34 IST ]
govt bailout for kingfisher defies logic says spicejet chief
govt bailout for kingfisher defies logic says spicejet chief

New Delhi, Nov 14: Amid the debate over bailout for private carrier Kingfisher Airlines, SpiceJet chief Neil Mills today said the government should not use taxpayers' money to revive a private sector company.


“It is the private sector. Why should there be any bailout for a private air carrier. I do not see any logic why taxpayer's money should be used to bail out a private company,” Mills told PTI when asked whether the government should bail out Kingfisher Airlines. 

Earlier, Prime Minister Manmohan Singh had said that steps would have to be taken to help the private sector entities if they get into difficulties.

Kingfisher Airlines chief Vijay Mallya had sought government help for meeting the financial challenges caused at the airline because of rising costs and high debt burden. 

The airline has also approached lenders for a reappraisal of working capital requirements following a surge in price of jet fuel in recent months.

Yesterday, top industrialist Rahul Bajaj has strongly opposed any bailout attempt by the government for the debt-ridden Kingfisher, saying “those who die, must die” in a free economy.

Political parties have also been opposing the idea of a bailout package for Kingfisher.

Kingfisher has suffered a loss of Rs 1,027 crore in 2010-11 and has a mounting debt of Rs 7,057.08 crore. 

The beleaguered airline has cancelled 210 flights since Monday, due to factors like increased costs. 

Spicejet, a low-cost carrier, has itself posted a net loss of Rs 240 crore for the second quarter of the fiscal, on spiralling fuel prices and a weakening rupee. Another private airline Jet Airways too posted a loss of Rs 730.60 crore for the same quarter.

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