Vayalar Ravi backs off over Kingfisher bailout

New Delhi: The minister of civil aviation's knee jerk reaction to the crisis facing Kingfisher Airlines has left the industry and the financial markets puzzled over the likely position of the government. While maintaining a deafening silence over the trauma faced by hundreds of passengers across the country, who forked out hefty premiums for re-booking tickets on other carriers after being left in the lurch by Kingfisher, minister Vyalar Ravi hastened to speak out about his efforts to provide financial succour to the troubled carrier.

Minister Ravi's initial response to the crisis was that he had asked the finance ministry to tell banks to restructure Kingfisher's debt. "After Mr Mallya spoke to me recently, I spoke to the finance minister three days ago and requested him to talk to the banks which had given loans to airlines and help them restructure their debt, if required," he said.

He further elaborated, that ''Closing down of flights affects the public. Whether it is private or public sector is immaterial. It is an Indian carrier. He (Mallya) could not get financial assistance, so he talked to me."

After his initial comments, which raised the possibility of a government sponsored bailout, attracted flak, Ravi sang a different tune and ruled out any government sponsored bailout.

By late evening on Friday, it became evident to minister Ravi that cutting across party lines, there was hardly any support for his initiative.

The main opposition BJP opposed any government-driven bailout with its MP and former finance minister Yashwant Sinha stating unequivocally, "There is no case for a government bailout.