Tycoon Vijay Mallya, whose cash-strapped Kingfisher Airlines cancelled scores of flights this week, drawing the ire of the government and travellers and spooking investors, questioned on Saturday whether it was the carrier's duty to fly loss-making routes.
Shares in Kingfisher, the country's second-largest airline by market share, fell as much as 18 per cent to an all-time low on Friday as investors fretted about the viability of the carrier, which acknowledged it had been late in paying salaries in recent months.
Media reports suggest that the government had decided in principle to allow foreign airlines to own up to 24 percent of Indian carriers, a move that could throw a lifeline to Kingfisher and its struggling rivals.
The report claims that the matter would be put before the cabinet of Prime Minister Manmohan Singh in the next four weeks.
Mallya, the flamboyant liquor tycoon who owns a cricket team and a Formula One racing team, asked on the social networking site Twitter whether it was Kingfisher's duty to fly loss-making routes while it was being heavily taxed by state governments.
Or should the airline be financially prudent and fly profitably, he asked.
Late on Friday, Kingfisher said it was dropping unprofitable routes and speeding up a fleet reconfiguration, which would see its daily schedule of flights drop to 300 from 340. It recently said it was exiting the low-fare segment of the business.
The carrier, whose share price has dropped 70 percent in 2011, bringing its market capitalisation below $200 million, also said on Friday it "does not see any risk to its future or long-term viability".
Aviation Minister Vayalar Ravi said he would approach the finance minister to seek emergency bank assistance for troubled airlines.
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