As cash reserves of aviation sector companies are “running down quickly” as planes are grounded amid the coronavirus pandemic, industry body FICCI on Wednesday recommended several measures to Finance Minister Nirmala Sitharaman and Civil Aviation Minister Hardeep Singh Puri to help the firms.
FICCI stated in its letter that the government needs to give appropriate directions to the Reserve Bank of India to ensure that the operation of existing “stand-by letters of credit, other foreign guarantees and bank guarantees etc. issued by Indian airlines operators or their banks” are suspended with immediate effect for a period of 90 days.
