National

No govt. bail out for airline, says BJP

The chief of BJP’s Economic Affairs cell and national spokesperson Gopal Krishna Agarwal has ruled out any government-sponsored bail out of the beleagured Jet Airways, and said that its fate should be left to market forces.

This comes on a day when Aviation Minister Suresh Prabhu tweeted that he had directed Secretary for Civil Aviation, Pradeep Singh Arora, to “review issues related to Jet Airways, especially increasing fares, flight cancellations etc.” He further tweeted that he had asked Mr. Arora “to take necessary steps to … work with all stakeholders for their well being.”

However, Mr. Agarwal said however, thatthis did not mean any kind of government-sponsored tax payer money backed bailout for the airline. “Sanctity of tax payers money demands that Jet Airways fate be left to the market forces. Oscillating between market economy and socialism ends up having the worst of both worlds,” he said.

“The recovery process for the airline should be under the Insolvency and Bankruptcy Code (IBC) and the National Company Law Tribunal (NCLT),” he said. A committee of lenders led by the State Bank of India has been in place for some time but the fate of the airlines is still uncertain.

Source: thehindu.com

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