Apart from claiming accumulated losses of over $2 billion, the private carriers owe nearly $500 million towards fuel to oil companies. The civil aviation ministry, however, has ruled out any bailout package for the aviation industry.

The decision Sunday came a day after Civil Aviation Minister Praful Patel said the government was not in a position to help private airlines financially, even as the industry watchdog sought an explanation within 48 hours on the reason behind their move.

Even as the federation was deciding on its next move, an official spokesperson said the state-run carrier Air India said will push more flights into service Aug 18 to minimise any inconvenience to passengers if the private carriers suspend their operations.

In the meanwhile, however, low-cost carrier IndiGo said it was withdrawing from the federation's general decision to suspend operations and would prefer to hold a dialogue with the government to come out of the crisis.

'IndiGo appreciates the sentiments expressed by the ministry of civil aviation that it understands the problems faced by the Indian aviation industry and that we should all engage in a dialogue with the ministry,' said IndiGo president Aditya Ghosh.