Tuesday, April 21, 2020

Flight takeoff hopes dashed

While government-run Air India stopped the bookings after the ministry’s advisory, private carriers ignored it and continued taking bookings for travel after May 3, prompting the aviation regulator DGCA to issue a circular.

“All airlines are hereby directed to refrain from booking tickets... Further, the airlines may note that they shall be given sufficient notice and time for restarting operations,” the circular said.

Sources said airlines have sought a formal order from the authorities and clarity regarding flight resumption and the booking window.

“Forward bookings are an essential component of our cash reserve. If there is no clarity about when that can resume, it will affect the entire chain of aviation ecosystem. Airlines have limited cash at present as revenues are zero and they have to pay salaries of critical staff, lease rentals, airport charges, do aircraft maintenance and be ready with some cash for their resumption plan. Uncertainty will lead to severe operational and survival issues for many," analysts said.
21/04/20 Telegraph

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