Against the backdrop of lenders set to take management of Jet Airways underneath a debt decision plan, he stated banks are direct stakeholders and are coping with industrial issues of the airline the place the ministry wouldn’t prefer to intervene.
Interacting with PTI journalists right here, Prabhu stated, “The ministry should not be dealing in any commercial transactions of any kind. Same thing I did for railways or for anywhere else. The issue is between banks and the management”.
He was responding to a question concerning the case of the now defunct Kingfisher Airlines the place banks apparently didn’t intervene.
Days after Jet Airways’ board accepted a debt decision plan, whereby the lenders led by SBI would take management of the airline, embattled liquor baron Vijay Mallya had lashed out at public sector banks for “double standards” underneath the present NDA regime for his or her intervention to bailout Jet Airways whereas the identical lenders made his Kingfisher airways “fail ruthlessly”.
Mallya was the founding father of Kingfisher Airlines.
In response to queries associated to Jet Airways disaster, Prabhu stated the ministry shouldn’t be seen to be doing any offers of any sort that may assist in any method.
“It is always possible. You can help a company by bringing the other down,” he stated.
“We should not be seeing to be doing anything which would be construed or seen or actually resulting in either favouritism or doing something wrong against somebody. We did not do that,” the minister stated.
However, Prabhu stated the ministry can be wanting on the security elements.
When requested if the federal government performed any position in state-run banks taking up Jet Airways, the minister stated, “What role have we got? That is exactly the point. That is what Jet Airways was trying to come with us. We said we will not play any role into this”.
To one other question on whether or not the ministry would have been completely nice and remained a impartial observer had the Jet Airways gone underneath, Prabhu replied, “That is banks’ call. There is a law which says that any company which could not service the liability – how to deal with that”.
“Our role is very clear. And that is what I have personally done actually. It is not to interfere into any commercial matter of any airline,” he emphasised.
About latest conferences between the ministry officers and Jet Airways’ executives, Prabhu stated the conferences are going down as a result of “we are dealing with safety”.
“There is a direct issue of safety of Jet Airways, or for that matter, any other airline,” he stated.
“Safety is ensured because we are telling banks that if you are taking over as management, then ensure that the safety is assured, and give enough funds for the safety,” he added.
Prabhu stated his job as an aviation minister is to return with the coverage, guaranteeing that coverage permits the expansion and it permits to take care of the scenario of this sort.
“My policy should be robust enough to take care of situations like this… Earlier, many times, the government would be tempted to be interventionist… We are very clear that managing the airline is the responsibility of the respective board and the airline company,” he stated.
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