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    Coronavirus effect: Airlines request govt to cut aeronautical tariff by 30% for 6 months

    Coronavirus effect: Airlines request govt to cut aeronautical tariff by 30% for 6 months

    Coronavirus effect: Airlines request govt to cut aeronautical tariff by 30% for 6 months
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    By Anu Sharma   IST (Published)

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    Domestic and international airlines have requested Indian government to reduce aeronautical tariff by 30 percent for six months as demand for tickets has weakened due to the fast-spreading coronavirus outbreak.

    Domestic and international airlines have requested Indian government to reduce aeronautical tariff by 30 percent for six months as demand for tickets has weakened due to the fast-spreading coronavirus outbreak.
    In a letter written to the aviation ministry, the board of airline representatives in India has requested for such changes to ensure airlines continue operations with low passenger load factors as well.
    "The current situation is causing a lot of concern, due to flight cancellations and travel restrictions, imposed by various countries and it is becoming difficult to sustain flight operations, thereby affecting the load factors of all airlines," the Board of Airline Representatives in India has said.
    Pointing out that the aviation regulator, the Directorate General of Civil Aviation (DGCA), has advised airlines to waive cancellation charges of affected passengers, the association has reiterated that it is the airlines which are bearing the brunt of a recessionary situation with decreased travel demand and lower yields.
    "The COVID-19 pandemic is having serious effect on the airline industry which is under tremendous pressure to survive this storm," the association added.
    Global airlines have started cutting capacity by as much as 75 percent while some have temporarily shut down to survive the severe impact of the deadly coronavirus.
    Over the last two weeks, there has been a steep fall in air travel as countries impose visa restrictions and issue travel advisories. India suspended all visas with effect from March 11. On March 16, it also banned entry of passengers from the United Kingdom, European Union, EU-FTA and Turkey.
    Aviation consultancy firm CAPA on Monday warned that most airlines in the world will go bankrupt by end of May unless there is government intervention.
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