Civil Aviation Minister Hardeep Singh Puri said that airlines in India are seeking at least $ 1.5 billion as an interest-free credit line from the government. The nationwide lockdowns and restrictions, due to the Covid-19 pandemic have hit the demand of the air travel industry.

Mr. Puri in a written reply in parliament said that the carriers of the world’s growing aviation market are also seeking to defer loan repayments by six months, without these borrowings it will get classified as “non-performing”. Local airlines have asked the government for including jet fuel in the Goods and Services Tax of South Asian Nation and to abolish excise duty on aviation turbine fuel, the minister said.

Due to the pandemic, airlines from Africa to Australia have been hammered, as the companies cut back on travel and holidaymakers defer trips, other than that border restrictions dent international journeys. PM Narendra Modi has yet to announce a monetary package for pumping up the aviation industry, as the country is struggling among major nations in the worst economic slowdown.

However, Mr Puri said that the government is engaged with aircraft lessors and financiers to ensure that there is no premature withdrawal of planes. He added that the local traffic has been slumped almost by 80 per cent to just 12 million passengers in the five months to 31, July.