India aviation minister Ajit Singh stands by airlines

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Kingfisher plane, file pic
Image caption,

Kingfisher has not posted a net profit since it started operations in May 2005

India's government says it will stand by ailing airlines amid fears financial problems may affect their safety.

Civil Aviation Minister Ajit Singh said the government could recommend measures to ensure safety, the Economic Times newspaper reported.

On Thursday, the aviation regulator met Kingfisher Airlines and Air India Express after an internal report raised finance-related safety concerns.

Kingfisher and Air India Express both defended their safety standards.

Experts said the report suggested the ailing airlines might be cutting corners which could have an impact on passenger safety.

Kingfisher said it was operating with "utmost safety". An Air India Express spokesman also defended the carrier's safety standards.

'Rough patch'

Five of India's six main airlines have been reporting losses for the past few years. They have been particularly badly hit by fuel price rises.

"There is no case to let airlines shut down for financial or safety reasons. We can recommend measures to ensure safety," Mr Singh, who took charge of the ministry in December, told the Economic Times.

"We will not cancel licences because even one airline winding up has repercussions for the entire industry.

"World over, airlines are financially impacted. It is a rough patch for domestic carriers and we have to provide help to the sector," he said.

The minister said the government would ensure that the carriers got fuel at competitive prices and that working capital was made available to them.

On Thursday, Bharat Bhushan, director general of civil aviation, met executives from Kingfisher and Air India Express in Mumbai.

Mr Bhushan said that at a time when airlines were in financial difficulties, the regulator was bound to ask carriers to address its concerns.

He said: "We have been in touch with all the airlines... and we are ensuring that safety norms are ensured. We have asked them to come back in a few days and tell us what measures they will be taking."

He denied any carrier was in danger of having its licence cancelled, after the internal audit report was quoted as saying this might be considered.

The Times of India had quoted from the report, saying: "A reasonable case exists for a withdrawal of their (Kingfisher's) airline operator permit as their financial stress is likely to impinge on safety."

The audit also criticises Air India Express, the budget arm of state carrier Air India, saying a "case exists for restricting their operations in view of safety issues".

The audit found "major financial distress issues" with other airlines too.

Kingfisher - owned by liquor baron Vijay Mallya - recently announced significant losses amid cost concerns for the whole Indian aviation sector.

In September the airline shut its budget carrier, Kingfisher Red, saying it no longer intended to compete in the low-cost market.

Five of India's six main airlines are loss-making. They have been particularly badly hit by fuel price rises.