Friday, March 27, 2020

Indian airlines in immediate danger of insolvency: IATA to Modi

New Delhi: Indian airlines are currently in "grave and immediate danger" of insolvency as a result of disruption in air travel due to the coronavirus pandemic that can reduce about 5.75 lakh jobs in the Indian aviation industry, global airlines body IATA has told Prime Minister Narendra Modi.

In a letter to the PM dated March 24, Alexandre De Juniac, director general of the International Air Transport Association (IATA), said, "IATA estimates that COVID-19 could result in a 9 per cent loss in passenger volumes and $2.1 billion loss in passenger base revenues for the air transport market in India in 2020".

India is currently under a 21-day lockdown from March 25 to curb the spread of coronavirus. Therefore, all domestic and international commercial flights have been suspended during this period.

"The disruptions in air travel from COVID-19 could reduce about 575,000 jobs and $3.2 billion in GDP supported by the air transport industry in India," Juniac said in the letter.

IATA has around 300 airlines as its members, comprising around 82 per cent air traffic globally.

"Unless government action is taken now, the post-pandemic economic recovery in India would be seriously impeded," Juniac stated in the letter, which has been accessed by PTI.

Various Indian airlines have already announced their cost-cutting measures as there has been a drastic fall in revenues due to the virus outbreak.
27/03/20 PTI/Times of India
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