Aviation consultancy CAPA India additionally mentioned there’s a want for a coordinated nationwide aviation trade response to the present state of affairs.
- Last Updated: March 25, 2020, 6:04 PM IST
Indian aviation sector is projected to incur a staggering USD 3.3-3.6 billion loss within the first quarter of the following monetary yr if flight companies stay grounded until June-end, based on a report. Aviation consultancy CAPA India on Wednesday additionally mentioned there’s a want for a coordinated nationwide aviation trade response to the present state of affairs.
India has suspended operation of economic flights until April 15 as a part of bigger efforts to stop the spreading of coronavirus infections. In a report, CAPA India mentioned airways are anticipated to submit a lack of round USD 1.75 billion whereas that of airports and concessionaires might be USD 1.50-1.75 billion. Ground handlers are estimated to submit a lack of USD 80-90 million.
Together, the loss for the sector is anticipated to be USD 3.3-3.6 billion within the first quarter of the following monetary yr. At present change charges, the quantity interprets to round Rs 25,000 to 27,000 crore.
The projections are primarily based on the belief that each one home and worldwide operations stay grounded till June 30, 2020, CAPA India mentioned.
The first quarter of the following fiscal – 2020-21 – is from April to June.
“The extension of the domestic lockdown until at least 15-Apr-2020 is the right decision by the Government of India. However, it has ensured that aviation will be seriously impacted by COVID-19. The April-June quarter, traditionally one of the stronger quarters of the year for Indian airlines, is increasingly looking like it will be a washout,” the report mentioned.
Further, it mentioned that the majority Indian airways haven’t structured their enterprise fashions to have the ability to stand up to even common shocks, comparable to elevated gas costs or financial downturns, not to mention once-in-a-century occasions.