Kingfisher Airlines will be allowed to operate as long as it does not compromise with safety.
“We cannot shut down the airline (Kingfisher) till there are safety issues involved,” Civil Aviation Minister Ajit Singh told reporters on the sidelines of a tour operators convention.
The Vijay Mallya-promoted full service carrier, facing severe funding crunch, has not paid salaries to most of its employees, including pilots and engineers, for long, triggering calls for strikes over the last couple of months.
Responding to a query on Air India, the Minister said the national carrier has shown some improvement but it needs to do more. The government has committed a Rs 30,000-crore financial support package to Air India, he said adding it will have to be competitive with other players in the domestic space.
Earlier, addressing the seminar, Singh said tourism and civil aviation sectors are inter-linked and are vital for the economic development of the country.
“The growth of civil aviation and tourism sector are inter-dependent and they complement each other. The most important contribution that aviation makes to the economy is through catalytic impact on the performance of other sectors and as a facilitator of their growth,” he said.
Stating that the airlines industry is going through a severe financial crisis, Singh said the government has taken number of steps to address the financial issues of the industry. “The issue of allowing FDI in airlines is also under active consideration of the government,” he added.