India's union Civil Aviation Minister Ajit Singh has said that the Kingfisher Airlines should not be closed down just because it making losses and the country's banks are not ready to offer it funds.

He also said that the airline should be allowed to operate as long as it does not put the passengers at risks and follows schedule. He was speaking to the media and responding a question over possible government action against the company if it violates regulations.

The airline had earlier approached the Indian government for providing financial assistance saying that it will not be possible for it to carry out normal operations without a temporary bank overdraft. The airline requires the financial assistance to pay its creditors and avoid grounding its fleet.

The aviation minister had said that there are no possibilities of extending government financial to the cash-strapped Kingfisher Airlines. The ministry asked the Airports Authority of India to grant Kingfisher additional time to pay its dues.

Meanwhile, Kingfisher Airlines has received recapitalisation offers worth 8 billion rupees or about $163.5 million from two separate investors in the country, according to Kingfisher Chairman Vijay Mallya.

The two investors will get a combined 24 percent stake in the airline after the deal. Kingfisher Airlines has cancelled 30 additional flights in Mumbai and Bangalore and changed the schedules of two others. The troubled airline stopped making bookings to Kolkata following a warning of a strike by employees over non-payment of salaries.