Saturday, March 21, 2020

Indian aviation industry struggles to cope with downturn sparked by coronavirus pandemic

New Delhi: With the number of coronavirus patients growing significantly in India each day, the world's third biggest domestic aviation market has also begun feeling the heat of a downturn caused by the pandemic.

A report from the Centre for Asia Pacific Aviation India (Capa India) released on Wednesday (March 18) anticipates a fall of around 50 per cent in domestic air travel demand in India in the next six to eight weeks.

The report also notes that while year-on-year yields have already fallen by around 12-15 per cent in the first half of March, revenues could further deteriorate by 25 per cent or more.
Combined with a fall in demand for international air travel to and from India - currently estimated between 60-70 per cent - Capa India predicts Indian carriers may have to ground around 150 aircraft, including almost all of their international fleet.

This number is expected to increase as more domestic operations are curtailed over the coming weeks.

"If the decline in traffic continues to be severe, the majority of the fleet could be grounded by April," said the report.
21/03/20 Straits Times

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