BENGALURU: Indian Airlines cancelling flights to China in the wake of the coronavirus epidemic for the next 30 days could be costing them upwards of Rs 25 crore, said sources.
While these are rough estimates, the actual revenue loss could be much higher or lower depending on a variety of factors, said insurance sources.
Both, Air India –which has now suspended its Delhi-Hong Kong and Delhi-Shanghai till March 28, 2020 — and Indigo, which has cancelled its three dailies to China, have covers with New India and the three other public-sector general insurers. New India is the leader underwriter for the policies, said sources.
SpiceJet is continuing its Delhi-Hong Kong flight.
The sum insured, sources said is $1.5 billion in coverage for a range of liabilities including third-party, baggage claim, passenger, cargo, hanger and airmail liability.
