Should the Indian Government Bail Out Private Airlines?

This week, six of the seven private airline in India have called for a one day no fly day on August 18th 2009. The reason: to protest against the high cost of aviation fuel and high airport tax, which they sight as the main reasons why they lost about Rs 10000 crores ($2 billion) last year. They want the government to bail them out.

1. Granted that the government of India is spending Rs 15000 crore ($3 billion) to bailout the government run Air India and Indian Airlines (Which I see as throwing good money after the bad), but should this bailout package be extended to the entire aviation industry?
2. Have the airlines which saw double digit growth in passenger volumes expanded way beyond their means to sustain themselves in this recessionary environment? Can the airlines survive by increasing their prices or by cutting their fleet strength?
3. What about the infrastructure like airports? Have they kept pace with the growth of the industry? If not should the government also share the blame for the current crisis?
4. Should the government spend money on bailing out the airlines and risk not having enough money to build the necessary infrastructure; or should the government spend money on modernizing the infrastructre and let the markets take care of the airlines and risk loosing lot of airline traffic due to closure and consolidation of the various airlines?