The ongoing financial crisis of the beleaguered Kingfisher Airlines is synonymous to economic mess being faced by the entire aviation industry. As the cash-strapped Kingfisher airlines is not the sole example in isolation, the Centre is equally responsible for the financial quagmire in the aviation sector.  The fact is that the flag carrier airline of the country Air India is not only heavily debt-ridden but also on verge of bankruptcy and barring one or two private airlines, the remaining ones are staring at heavy financial losses. Is the Union Government waiting for the private airlines to face a similar scenario which the Air India has been going through for a long time? It is a height of sloppiness that the Union Government despite being well-versed with the situation has refused to undertake concrete steps in this context, and the increase in petro rates mingled with the additional taxes have compounded to the miseries of aviation sector. In a major surprise, the Centre neither made any relaxation in the different types of taxes being charged from the airline companies nor has made any effort to increase the foreign investment in the sector.  The dilly-dally approach of the regulatory body – Directorate General of Civil Aviation has even further deepened the crisis. Why it cannot formulate any proper hypothesis about the financial condition of the private airline companies? The poor management system of Kingfisher airlines may be responsible to an extent for the present crisis, but why was the private airline not given a beforehand alert on this issue?  The situation has dipped to the extent that if the Banks do not reflect a benevolent attitude, these private companies may come face-to-face with a possible lockout.

Doubt still looms large over government’s effort to bailout the beleaguered Kingerfisher airlines. If the Centre steps forward to help Kingfisher, it is bound to face sharp antagonism from the Opposition and other private airlines. Under the present scenario it is not possible for the Centre to provide a direct aid to Kingfisher, therefore the government should focus on measures to resolve the issues which have accounted for heavy financial losses to the private companies. Undoubtedly, it is not the role of the Centre to bailout any debt-ridden company, but it has to ensure a healthy and competitive atmosphere for them. They should not be entangled in terms and conditions which could raise a threat at the very existence of a company. In the present era, it is imperative for the Aviation industry as well as the other industrial sectors to prosper.  The aviation sectors hold the key to the success of trade and industries. More than luxury, the air journey has become a necessity these days. Before the situation dips any further, the government is required to take serious steps to update the laws related to aviation sector. It is only possible when the private aviation companies are given the right to operate as per the industrial regulations. The Union government should keep in mind that if other private airline companies face a similar situation, the entire aviation sector may be engulfed in a deep crisis.