Bajaj derides Kingfisher "bailout" talk

New Delhi, Nov 13 (IBNS) The hint of a government bailout plan for the crisis-ridden Kingfisher Airlines has invited derisive remarks from corporate bigwigs like Rahul Bajaj.

The chairman of Bajaj Auto speaking to news channel NDTV said "those who die, must die."

Bajaj said he is himself a proud private sector man and no bailout should be done for even the sake of employees.

He said it is a free market economy and hence those dying should die.

He said if his company lands in mess, will the government bail it out too.

He said even the loss making Air India should be privatized and the tax payers´ money should not be wasted.

Prime Minister Manmohan Singh on Saturday indicated that his government would try to help the Kingfisher Airlines, even as the private carrier said it has not made any bail out request to the government.

"Private sector airlines have to be managed efficiently, but if they do get into difficulty, we have to find ways and means to help them get out of the process," the PM said on way to New Delhi from Maldives after attending the SAARC Summit there.

The PM said he had not applied his mind yet on the issue, but he would talk to Civil Aviation Minister Vayalar Ravi on the Kingfisher crisis.

Earlier on Saturday, Vijay Mallya-owned Kingfisher Airlines said it has not made any bail out request to the government.

"Kingfisher has not made any bail out request to the government. We have only asked our banks for an increase in limits due to significant increase in operating costs caused by increase in fuel prices and rupee devaluation," said a statement issued by Sanjay Aggarwal, CEO, Kingfisher Airlines.

"Kingfisher has credit terms or payment arrangements with all its vendors which we are complying with."

He said: "There has been a few days delay for the last 2-3 months in payment of employee salaries. However, all employees have been paid in the month the salaries were due."

Civil Aviation minister Vayalar Ravi had said on Friday that Union Finance Minister Pranab Mukherjee might speak with the banks over a possibler bailout for Kingfisher but said that a debt recast was not possible.

Ravi said owner of Kingfisher Arlines, Vijay Mallya, had spoken to him for some help and hence he discussed the issue with Finance Minister Pranab Mukherjee and Oil Minister Jaipal Reddy.

Kingfisher Airlines have been passing through tough situation for quite some time now with the airlines losing nearly Rs. 1000 crore in the current financial year.

The airlines has to repay a bank loan of Rs 7,000 crore, media reports said.

The flight company has not made payments to the oil companies.

Aviation regulator in India Directorate General of Civil Aviation (DGCA) had sent a notice to Kingfisher Airlines, asking to give reasons behind the cancellation of at least 80 flights in the last three days.

Owned by Vijay Mallya, Kingfisher Airlines has been cancelling large number of flights in recent times.