- Most airlines temporarily shut down foreign flights, cash shortage worsens the situation
- Country’s airlines estimated loss of Rs 4500 crore in March quarter
The government may announce a package of $ 1.6 billion (Rs 12000 crore) to give relief to the aviation sector facing recession due to Coronavirus. News agency Reuters gave this information on Thursday, quoting sources. Accordingly, the Finance Ministry is considering a proposal to exempt most taxes applicable to the aviation sector. Airlines will be able to pay the outstanding tax later without interest. The Ministry of Civil Aviation has proposed a rescue package.
Some airlines may shut down due to cash crisis: report
Vistara and GoAir have currently discontinued all international flights. The country’s largest airline IndiGo has also canceled several flights abroad. The Indian unit of Global Aviation Consultancy (CAPA) says that most airlines will have to reduce operations if the government does not get help. Companies in critical condition may also close. CAPA estimates that all airlines in the country, including Air India, will incur a loss of $ 600 million (Rs 4,500 crore) in the January-March quarter.
Aviation sector around the world needs 15 lakh crore bailout
Not only in India, but the aviation industry around the world is in crisis due to Coronavirus. Due to lack of bookings, airlines have to stand the planes and employees are being laid off. According to the International Air Transport Association (IATA), in the current situation, the airline companies may require a bailout of $ 200 billion (Rs 15 lakh crore).
Coronavirus has killed 3 people in India so far
The number of people infected with coronavirus has exceeded 2 lakhs worldwide. Some 8,500 people have died in 164 countries. There have been more than 150 cases of infection in India, so far three people have died.