Airlines in India seek $1.5 bn in interest-free credit line, says govt

Carriers are also seeking to defer loan repayments by six months, aviation minister tells Parliament.

Airlines in India are seeking at least $1.5 billion as an interest-free credit line from the government, Civil Aviation Minister Hardeep Singh Puri said, as lockdowns and restrictions linked to the coronavirus pandemic hit demand for air travel.

The carriers in what was until recently the world’s fastest growing aviation market are also seeking to defer loan repayments by six months, without these borrowings getting classified as “non-performing,” Puri said in a written reply in Parliament. Local airlines have asked the government to include jet fuel in the South Asian nation’s goods and services tax, and abolish excise duty on aviation