These airlines had earlier issued a threat that they would also stop flying next month if a bailout package was not announced by the government to help them tide over the ongoing financial crisis, which they claim has escalated their collective losses to over $2 billion.

Among the various demands, the carriers cuts in sales tax on aviation fuel, and on airport charges - which they say have ballooned since they started operations.

Apart from their accumulated losses of over $2 billion, the private carriers owe nearly $500 million as fuel dues to oil companies.