Indian airlines seek $1.5 billion interest-free credit line from government

NEW DELHI: Indian airlines have sought interest-free credit of at least $1.5 billion from the government to enable them to cope with the loss of revenue from the coronavirus pandemic, the country’s aviation minister said on Wednesday.

Airlines including IndiGo NSE 0.78 %, Vistara, a joint venture between Tata Sons and Singapore Airlines, SpiceJet NSE -1.88 % and state-run carrier Air India, also want the government’s help to persuade aircraft lessors to ease leasing terms, as well as a deferment of taxes and abolition of excise duty on aviation fuel, Hardeep Singh Puri said in a written statement to the parliament.

The airlines are appealing to banks and other lenders to defer repayment of loans to the aviation industry by six months, the minister added.