Indian airlines seek interest-free credit from the government

Indian airlines have sought interest-free credit of at least $1.5 billion from the government to enable them to cope with the loss of revenue resulting from the Covid-19 pandemic. Airlines including IndiGo, Vistara and Air India also want the government’s help to persuade aircraft lessors to ease leasing terms, as well as a deferment of taxes and abolition of excise duty on aviation fuel. The airlines are also appealing to banks and other lenders to defer repayment of loans to the aviation industry by six months. The revenue of Indian airlines fell by 85.7 per cent to Rs 36.51 billion during the first quarter of 2020-21 as compared to the corresponding period a year ago.