New Delhi, Aug 2 - India's private airlines Sunday called off their proposal to suspend domestic operations Aug 18 in view of widespread public protest and a stern warning from the government.

The Federation of Indian Airlines (FIA), a representative body of the carriers, had earlier said the private airlines would not fly Aug 18 if the government failed to announce a bailout package to help tide over the ongoing crisis which they claim has escalated their collective losses to over $2 billion.

However, the federation said Sunday that in view of the agitated public sentiment and the willingness of the government to enter into dialogue with airlines, it has decided to call off the decision to stop services.

It also expressed hoped that talks with the government would lead to redressal of the problems faced by the aviation sector.

Among the various demands from the federation are: direction to oil retailers to sell aviation jet fuel cheaper and reduction in airport charges which they say have ballooned ever since private players were allowed into the field.

The FIA's decision comes a day after Civil Aviation Minister Praful Patel said the government was not in a position to private airlines financially.