In India, mass flight cancellations by one of the country’s biggest airlines have turned the spotlight on the country’s struggling aviation sector. The government says it is trying to address the problems faced by an industry crucial to the growth of India's economy.

India Aviation

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Hundreds of passengers were stranded, across the country, as Kingfisher Airlines announced more flight cancellations on Tuesday. The airline is operating less than half of its 64 planes and has scrapped nearly 100 flights on some of the busiest routes in recent days.

Kingfisher has been cash-strapped for several months. But the company's problems deepened when tax authorities froze its bank accounts after it failed to pay taxes. Many pilots have quit as the airline battles to pay creditors and staff.

Until last year, Kingfisher was counted as India’s premier airline, but it is now the worst hit among domestic airlines that are struggling with debts and losses.

Regulators Tuesday ordered Kingfisher to prove its operational viability and said its safety standards would be scrutinized.

Aviation Minister Ajit Singh has ruled out a bailout for the company. But he says the government is concerned about the health of a sector that is crucial for the country’s developing economy.

“Any industry, if one big company goes down, it does affect people," Singh admitted. "Since demand is more and seats are less, we have to monitor. Safety issues are there and safety is impacted by the financial situation also.” 

Minister Singh expressed hope that a recent proposal to allow


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