India's once-rosy aviation sector seems to be experiencing turbulence. The country's premier and private Kingfisher Airlines, which had second-largest share in domestic air travel market, is ailing and on verge of collapse.

Faced with mounting losses and starved of cash, the airlines has already canceled over 100 flights over the past three days up to Monday, forcing India's civil aviation authority to start a probe into the matter and summoning its top official to explain the flight abandonments in the national capital.

The airlines, which has never made a profit since it was launched in 2005 by liquor baron Vijay Mallaya, has sought the Indian government's financial help to stop it from tipping into bankruptcy. But despite several attempts to garner financial support from the Indian government over the last six to eight months, Kingfisher Airlines has so far got negative response, with the government today ruling out any bailout plan for the airline.

Civil Aviation Minister Ajit Singh told the media, "the central government is not going to have any bailout plan for Kingfisher Airlines. The government is not going to ask banks or private industry for that matter."

"Recently the government had seized their bank accounts also. So our first concern is that flights which are ongoing, passenger safety should not be compromised and then let us see what reply they give. Directorate General of Civil Aviation is inquiring into it," he added.

So far, banks have also been reluctant to offer further funding to the airlines whose accounts have been frozen by the tax authorities following non-payment of service taxes. The airline made a loss of 4.44 billion rupees (90 million U.S. dollars) in October to December 2011 quarter, compared with 2.54 billion rupees a year earlier. It said high fuel costs and a weak rupee had hurt its earnings.

In fact, Kingfisher Airlines is reeling under more than 60 billion rupees of debt. In a debt restructuring deal last year, a group of 13 lenders bought a 23.21 percent stake in the airlines by converting 7.5 billion rupees of its total debt of 70 billion rupees into equity. The airlines is now pinning its hopes on the government allowing foreign airlines to take up to a 49 percent stake in local carriers.

"Kingfisher Airlines has already shut down its budget carrier in a bid to streamline its operations. Now, the foreign direct investment in aviation sector is the last hope for the debt-laden ailing airlines," said an industry expert.