Closing the airline is not a viable option. It would only add to the confusion and the only sufferers would be travelling public and the employees and of course the exchequer. The very limited international aviation presence India has would be eroded. No point "re inventing the wheel". It would be more appropriate that the government addresses the issue carefully and instead of denying the existence of the threat- accept it and take precautionary measures.
Also to increase the international presence - they should allow private domestic airlines to go international instead of trying to use "license raj" to prevent competition for its loss making public sector units. Although I hasten to add - that I for one will probably suffer from this move, but recognise the inevitability of it. How come Indian Air Lines is not having the same problems when they are operating on similar SARS affected routes? Because of the possibility that private operators would usurp their market image which is already staggering under huge losses!
