Airlines send out SOS as loans dry up, fuel prices hit record high

Companies have sought government intervention to get banks to lend working capital

The aviation industry is facing severe funding roadblocks even as skies are opening up and the impact of Covid19 is on the wane. Loans for Indian airlines have dried up as banks have become cautious to lend to the sector. With fuel prices reaching record high, escalating the cost of operation, airlines have sought government intervention in getting banks to lend working capital.

While market leader IndiGo has been able to tap banks to raise loans due to its strong cash position, it has become difficult for smaller airlines like SpiceJet and Go First to get loans from banks due to