Referring to the recent threat by Indian carriers to suspend operations if airport charges and aviation fuel prices were not slashed, the official said: 'They have lost public sympathy. They have to self-regulate'.

He admitted 'there is a problem regarding aviation fuel rates and operation costs', and added: 'The aviation ministry has taken up the issue of taxes imposed by states on aviation fuel. But the government is of the view that it cannot take away their (state)revenue without their consent.'

The official also hinted at reducing the productivity linked incentives of Air India employees by at least 40 percent. These incentives constitute a major portion of staff salaries.