New Delhi: Under attack from MPs for offering relief to private airlines at the "cost of common man", the Government on Thursday denied that any financial bailout package has been given to any airline.
"No financial cheque or relief has been given to the private airlines. Only thing is that credit period for current purchases of fuel has been increased to 90 days from existing 60 days," Civil Aviation Minister Praful Patel told Lok Sabha.
"No cheque has been given to any airline, bailout is wrong and no loss to any oil company," he added.
Patel admitted that air traffic has slowed down for the first time in last four years.
He, however, assured the members that the Government's plan to add a number of airports and modernising the existing facilities would not be affected by the slowdown.
However, fuel prices could see a cut. Speaking in Parliament, Oil Minister Murli Deora said a decision will be taken based on Friday’s OPEC meeting.
The OPEC meeting was originally to be held on November 18 but the date has been pushed back.
Crude prices have been consistently dropping – currently at a new 16-month low of $67 a barrel. Deora had earlier said oil companies will break even when crude prices fall to $61 a barrel.
“There is a fall in the international prices of crude and as on today the price has come to $61.47 bbl. We are trying our best and are watching the situation from some time. Then we will take a decision. We can assure the member that still this fall in the prices we are losing money in all four products: petrol, diesel, kerosene and domestic LPG. What is really coming in our way is the fall of the rupee versus dollar. Tomorrow, the OPEC countries will make their announcement on their future course of action, then we will take this action,” he said.
(With PTI and CNN-IBN inputs)
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