Private carriers decided to suspend operations from strike Aug 18 to force the government to find a solution to their grievances, especially that relating to high turbine fuel price.

The move to suspend flights is to 'highlight the urgency for the government to intervene immediately,' said Anil Baijal, secretary general of the Federation of Indian Airlines (FIA), the organisation representing India's seven carriers.

Apart from a cut in sales tax on fuel, the carriers have also asked the government to direct oil retailers to sell aviation jet fuel cheaper and reduce the airport charges that they say have ballooned ever since private players were allowed into the field.

'Aviation fuel prices in India are among the highest in the world,' said Baijal, adding this alone accounted for 30-40 percent of an airline's operational costs.

The private carriers owe nearly $500 million towards fuel to oil companies. Baijal said that the accumulated losses of private carriers amounted to nearly $2 billion.

Thus far, the civil aviation ministry has ruled out any bailout package for the aviation industry, even though moves are afoot to help the national carrier tide over one of its worst crises.