Airlines seek 6 month lease rent deferral, rates reduction to cut costs

Domestic airlines are seeking deferral in lease rent by six months and a reduction in rates from lessors, but might get only limited relief based on their financial health and commercial relations, aviation sources said. “We are working with select airlines on deferral packages to help them through this period. We are offering up to 50 per cent reduction in rent for about three months with this being repaid over the second half of 2020,” BOC Aviation, a lessor, said.

BOC Aviation said it is also executing purchase and lease back transactions with top-tier airlines, providing them with liquidity, but is yet to conclude any such transaction with an Indian carrier since outbreak of the coronavirus disease (Covid-19). Its customers in India include GoAir, IndiGo, SpiceJet and Vistara.