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Last Updated : Apr 15, 2020 07:34 PM IST | Source: Moneycontrol.com

Coronavirus impact | Airlines discuss rescue plan with govt: Report

Indian carriers have suspended both commercial flights due to the nationwide lockdown to contain the spread of COVID-19.


Amid the nationwide lockdown, airlines have sought short-term aid from the government in order to stay afloat, according to a report by The Economic Times.

Indian carriers have suspended commercial flights due to the nationwide lockdown to contain the spread of COVID-19. The lockdown, which began on March 25, is scheduled to go on until May 3.

Moneycontrol could not independently verify the story.

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SpiceJet Chairman and Managing Director (CMD) Ajay has said the current crisis is an opportunity to make structural changes in the aviation sector.

"We are speaking with the government daily for short-term help and have urged the government to include jet fuel in the GST regime," Singh said, as quoted by The Economic Times.

Singh made the comments during a video-conference seminar organised by Bird Group.

Existing airport contracts hike the cost of aviation, Singh added.

Airlines were expected to resume operations on April 15 but cannot resume operations before May 4.

This has resulted in their revenues falling to zero and a severe cash crunch.

The Federation of Indian Chambers of Commerce and Industry (FICCI), earlier in April, said many airlines were on the verge of bankruptcy and require immediate government support.

Also Read: Most airlines may go bankrupt by May-end, says CAPA

Anand Stanley, Chairman of the FICCI Aviation Committee, had written the letter to Finance Minister Nirmala Sitharaman and Civil Aviation Minister Hardeep Singh Puri.

"One of the major challenges faced by the aviation industry is that cash reserves are running down quickly as fleets are grounded and flights are not operational in the past few days. Many airline companies are almost at the brink of bankruptcy," Stanley said in the letter.


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First Published on Apr 15, 2020 10:50 am
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