Indian Aviation Industry in Search For Aid From The Government

Aviation industry grounded in India at the moment is facing many problems. The industry has requested the government to provide aid in any form possible. Government has been asked to provide a fund influx to the aviation sector so that the airlines can breathe a sigh of relief. Much recently, the Airport Council International (ACI) appealed to the Indian government for temporarily differing the taxes levied on aviation sector till December 31, 2020. This request from the ACI came to compensate on the operational losses the airlines are facing because of lockdown. Indian aviation industry very urgently needs the government to understand its plea for help so that smooth operations can resume after the lockdown ends.

The Need for Making Good the Loss of Revenues and Retaining Liquidity Back

The imposed lockdown by the government has resulted in a massive loss of revenues for the airlines, and this has further resulted in deficient liquidity levels for the companies. The industry body is seeking relief from the government to make good its liquidity and losses by asking for deferment in payment of Goods and Services Tax (GST). The body has also asked for a reduction in the current airport charges and a temporary halt in the collection of excise duty on jet fuel and other financial aid.

Government Can Take Responsibility for Payment of Salaries 

Anand Stanley, FICCI Aviation Committee chairman, stated in a letter to the aviation minister, Hardeep Singh Puri, that the government could partake and pay at least 20% salaries of employees who have a gross salary of Rs 30,000 or less in a month. This request comes at a time when airlines such as Air India, IndiGo, Vistara and SpiceJet have started to cut the salaries of their employees. The possible losses for the Indian aviation industry in the June quarter is expected to be around $3-3.6 billion.