The way it looks, Kingfisher Airlines Ltd is about to become an instance of a company too big to fail.
While civil aviation minister Vayalar Ravi said there was no plan for a rescue package for the airline, he hoped banks would come forward and that the government will talk to them.
An approval for investment by foreign firms in the civil aviation sector is also around the corner.
This can only be called a bailout. And it will not only be for the airline. There are banks who own a tidy bit of the firm and which stand to lose a lot if it crashes.
This is a messy situation that was long in making. Kingfisher Airlines’ losses and potentially those of the banks that had lent heavily to it were visible to all, but the government pretended to be blind. This is not a regulatory failure, but a much larger governance failure.