Indian Airlines
The Government of India is going to provide an emergency loan program of about Rs 4,000 crore to airlines companies. Its purpose is to provide relief to companies from the operational problems caused by the Iran war. Under this scheme, every airline will get government guarantee on loans up to Rs 1,000 crore. Apart from this, airlines can also take an additional loan of Rs 500 crore, but for this the company owners will have to invest the same amount themselves. This plan is part of a bigger scheme of the Finance Ministry, in which the government is supporting businesses by giving guarantee on loans.
The government has made it clear that the guarantee is only for help, whereas the banks will do their full investigation before giving the loan. SpiceJet is expected to get the most benefit from this scheme, because the company is already struggling with cash crunch. Problems like delay in paying salaries and sending employees on leave without pay have also come to light. Here, the costs of airlines have increased due to the rapid increase in jet fuel prices and reduction in flights in the Middle East.
companies suffered losses
Permission for limited flights at big airports like Dubai has also affected the companies, because most of their income comes from flights to Gulf countries. Despite the announcement of a temporary ceasefire by the US and Iran, there is still uncertainty over the full resumption of flights, as airports in the Middle East are still exercising caution.
The condition of SpiceJet is more critical, about 37 aircraft are still standing due to lack of lease money and spare parts. The company has spent most of the funds raised in 2024, but the situation has still not completely improved. After the closure of Jet Airways and Go First in the last few years, banks are also taking more caution in giving loans to this sector.
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