New Delhi (Sputnik): The coronavirus pandemic has clipped the wings of major airlines around the globe. The Centre for Asia Pacific Aviation has predicted that most of the airlines are likely to go bankrupt if governments do not take efforts to rescue them.
The Centre for Asia Pacific Aviation, a global aviation market intelligence firm, has said that Indian airlines might require nearly $2.5 billion to to stay afloat during the financial crisis, as its pre-existing woes have been exacerbated by the pandemic. The sum may only last until the end of this year.
Although the airlines approached the federal government requesting a relief package to cushion the blow delivered by the lockdown, the government has yet to provide any relief. This is in contrast to relief measures which have been introduced in the countries of Europe and in the US; globally, airlines have been provided $123 billion in emergency assistance.
National and international flights were halted in India on 25 March and domestic flights only resumed after two months. Despite an initial surge in passenger traffic, induced by stranded passengers, the passenger traffic has ebbed considerably. High fuel costs and taxes have further increased the operating costs of the airlines.
Way Forward
Ankur Bhatia, aviation expert and the Executive Director of Bird group, told Sputnik that the aviation industry might not recover without stimulus, but the carriers, too, will have to optimise their capacity.
With the International Air Transport Association stating that nearly 3 million jobs might be lost along with $11 billion in revenue this year, several airlines in India have already cut staff and salaries.
When asked if any of the Indian airlines are headed for the same fate as Jet Airways and Kingfisher, the Bird group executive director said that growth was unprecedented in India despite the closure of these two airlines, that passenger traffic has only grown, and that airlines have discounted their fares to gain market share.
Meanwhile, India’s Civil Aviation Minister Hardeep Puri has also said that 300 Air India flights would be added to the operational flights.
Sourse: sputniknews.com
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