Civil Aviation Minister Hardeep Singh Puri said that airlines in India are demanding an interest-free credit line of at least $ 1.5 billion due to restrictions and restrictions related to the coronovirus epidemic demanding air travel.
In a written reply to a question in Parliament, Mr. Puri said that in recent times, the world’s fastest growing aviation market, there is a demand to postpone loan repayment by six months. Local airlines have asked the government to include jet fuel in the goods and services tax of the South Asian nation and abolish excise duty on aviation turbine fuel, the minister said.
Airlines from Africa to Australia have suffered an epidemic, as companies have cut travel, halting those traveling for holidays and imposing border restrictions. Unlike countries like the US, which have offered financial assistance to carriers, Prime Minister Narendra Modi has not yet announced any meaningful monetary package for the aviation industry, as the government grapples with the worst economic downturn among major nations Has been
According to an estimate by the Sydney-based CAPA Center for Aviation, the country’s carriers need $ 2.5 billion to fly, and one or more airlines in the country are expected to fail in the absence of additional funding from the government or their owners . India was one of the toughest places for the aviation industry even before the epidemic, with fares of 2 cents and some of the world’s highest fuel tax.
However, the government is engaged with aircraft leases and financiers to ensure that the planes are not prematurely returning, Mr. Puri said. He said local revenue had dropped by only 80 million to nearly 12 million passengers in five months to 31 July, destroying airline revenue.
According to the International Air Transport Association, India may lose more than $ 11 billion in revenue this year, along with 3 million jobs in aviation and related industries due to the epidemic. India is the second most affected country in the world by the epidemic, adding more than 90,000 cases every day and reaching over 5 million confirmed infections on Wednesday.
IndiGo, operated by Interglobe Aviation Limited, dominates the local market with around 50 per cent share. SpiceJet Limited, state-run Air India Limited, and local airlines of Singapore Airlines Limited and Malaysia’s AirAsia Group Bhd also compete in the market. IndiGo is the world’s largest customer for Airbus SE’s best-selling A320 ono jet, while SpiceJet is among the top buyers of the Boeing Company’s 737 Max aircraft so far.