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No proposal for A-I, IA bailout package: Hussain

Union Civil Aviation Minister Syed Shahnawaz Hussain on Monday said there was no proposal before the government to provide a bailout package for Air-India and Indian Airlines.

"The government has not made any promises for providing the bailout package for the two state-owned airlines," Hussian told reporters after a raising day function of Pawan Hans Helicopters Ltd in Bombay.

He said I-A would, however, be getting Rs 3.25 billion from the Centre as Parliament has given necessary approvals for the amount. Three years ago, the cabinet approved the amount as equity to I-A in form of margin money for fleet expansion.

Hussain also ruled out an increase in fares of both the airlines despite a slump in the aviation industry in the wake of September 11 terrorist attacks on the US.

Highlighting security concerns, the minister said civil aviation security in India was second to that of Israel.

"We have managed to foil many such attempts. India comes immediately after the US when it comes to a hijack threat," he added.

"There will be no compromise on security and passengers including VIPs, would be frisked by security personnel at every level," Hussain said adding, as a measure taken to beef up security at the ministry would soon deploy Central Industrial Security Force at all airports for round-the-clock surveillance.

On divestment of A-I, he said it would now be delayed due to the prevailing unfavourable circumstances.

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