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Saturday, 25 July, 2020, 18 : 00 PM [IST]

IndiGo board meeting on July 30 to consider raising funds through equity & debt

IndiGo has said its board of directors will hold a meeting on July 30 to consider raising funds through measures like issuance of equity shares, foreign currency convertible bonds (FCCBs) and non-convertible debentures. On July 20, the airline had said it would lay off 10 per cent of its workforce to fly through the "economic storm" caused by the coronavirus pandemic.

The airline's holding company InterGlobe Aviation told the BSE (Bombay Stock Exchange) on Friday the meeting of its board of directors is "proposed to be held on July 30 to discuss and consider, among other things, raising of funds through issue of equity shares, and/or foreign currency convertible bonds, and/or non-convertible debentures, and/or any other eligible instruments or securities representing equity shares or convertible into or exchangeable for equity shares".

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All airlines in India have taken cost-cutting measures such as pay cuts, leave without pay and firings of employees in order to conserve cash.

IndiGo is flying only a small percentage of its full fleet of 250 airplanes, its CEO Ronojoy Dutta had said on July 20.

"From where things stand currently, it is impossible for our company to fly through this economic storm without making some sacrifices in order to sustain our business operations," Dutta noted.

"Therefore, after carefully assessing and reviewing all possible scenarios, it is clear that we will need to bid a painful adieu to 10 per cent of our workforce. It is for the first time in the history of IndiGo that we have undertaken such a painful measure," he added.

India resumed domestic passenger flights from May 25 after a gap of two months due to the COVID-19 pandemic. However, the airlines have been allowed to operate only a maximum of 45 per cent of their pre-COVID domestic flights.

Occupancy rate in Indian domestic flights has been around just 50-60 per cent since May 25.

Scheduled international passenger flights continue to remain suspended in India since March 23. (Source: PTI)

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