Vijay Mallya-led Kingfisher Airlines has sought the government's help in dealing with a major crisis which has seen the carrier cancel a number of flights while struggling with a pilot exodus and huge debts.

The airline's stock plummeted after the aviation regulator issued a notice to the airline seeking an explanation on the flight cancellations it has resorted to apparently cut costs.

The airline owes huge amounts to oil companies, the Airports Authority of India and private airport operators GVK and GMR Group. The airline has not posted any profit since its launch five years ago, and reported a net loss of Rs1,027 crore last fiscal and Rs263 crore in the last quarter.

Mallya, who was not in the country, has now apparently asked the government to intervene in the matter by encouraging banks to give it credit and to buy more time from oil marketing companies (OMCs).

"He (Mallya) has met me and explained the situation. He has not been able to get financing from banks. So, I have had a word with the finance minister about it," Ravi told reporters here.

According to Ravi, he has also spoken with Petroleum Minsiter Jaipal Reddy, whose ministry controls the three OMCs to provide relief to the cash-strapped airline.

"It (Kingfisher) is in an unfortunate situation. As the government we don't want the airline to close down. We want them to fly," Ravi added.

However, the prinicipal opposition party -- The Bharatiya Janata Party (BJP) was dead against any bailout package.

"As a finance man I cannot support such a concession to a private sector entity," BJP leader and former Finance Minister Yashwant Sinha said.

"If Kingfisher airlines is not in a position to run on a financially viable basis, then it should find its own way. Whether they close, merge or do anything, there are many possibilities but no case for bailout," he added.

Kingfisher, which has a Rs6,000 crore debt, took various steps like hiving off low-cost operations and restructuring a part of its debt.

The recent turmoil in the airline started after it reduced 32 flights from its daily schedule, a move which the company said was taken to rationalise route plans and improve yields.

However, this was seen only as another sign of distress by the stock markets.

The company's stock at the Bombay Stock Exchange (BSE), declined over 19 per cent in early trade to a new low of Rs17.55. It however pared some of the losses and closed the day at 19.65, down 9.45 per cent.

Also, the airline saw about 100 pilots quitting recently, but the company's chief executive said such attrition levels were normal for the aviation business.

"Some 100 pilots have quit over the several months. There is a natural attrition which happens in any airline. UB group has continued to support us, so there is no question about the future or the viability of the airline," Sanjay Aggarwal, chief executive Kingfisher Airlines, told a news channel.

In the backdrop of a 30 per cent increase in jet fuel prices since December 2010, the domestic airlines' are expected to lose Rs3,500 crore in the first six months of this fiscal.

"Fuel prices have increased but the fares have not, this is a big problem. We request the state governments to reduce the sales tax," said Ravi.