Airline industry is in deep red, not just in India but across the globe. Many companies are planning to shut shop, cut pay of staff or even sack thousands of employees - some have already filed for bankruptcy. Zee Business brings to you a detailed report on the scenario in India and what it means for domestic airlines and across the world.
Coronavirus pandemic has thrown a big challenge before the airline companies with revenues taking a hit due to lockdown situation. Many companies have already announced lay-offs. Market intelligence company CAPA (Centre for Aviation) has already suggested that many airline companies would follow suit and file for bankruptcy in May.
Some of the bigger airline companies including British Airways, Qatar Airways have announced cuts in the workforce. While the former may retrench employees by almost 12000, the latter has hinted sacking 40 per cent employees. The airline companies are being forced to take such harsh steps under the current circumstances.
Many airline companies have already filed for bankruptcy as far as the global aviation industry is concerned in March-April. This includes Australia's Virgin Australia, Trans State Airlines and Compass Airlines in US and British Airline Flybe.
In the Indian context, a report by HSBC said that the domestic aviation companies could post their biggest loss in Q4FY20. The earning results for the final quarter will be closely followed in terms of expenditure and liquidity position. Though, it still maintains a 'Hold' on Spicejet and Indigo, HSBC said that the companies may likely face headwinds in near future.
Zee Business Managing Editor Anil Singhvi said that the only positive for the airline sector is in the form of its energy cost and expects the prices of Air Turbine Fuel to come down.
29/04/20 Harish Dugh/ZeeBiz
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Coronavirus pandemic has thrown a big challenge before the airline companies with revenues taking a hit due to lockdown situation. Many companies have already announced lay-offs. Market intelligence company CAPA (Centre for Aviation) has already suggested that many airline companies would follow suit and file for bankruptcy in May.
Some of the bigger airline companies including British Airways, Qatar Airways have announced cuts in the workforce. While the former may retrench employees by almost 12000, the latter has hinted sacking 40 per cent employees. The airline companies are being forced to take such harsh steps under the current circumstances.
Many airline companies have already filed for bankruptcy as far as the global aviation industry is concerned in March-April. This includes Australia's Virgin Australia, Trans State Airlines and Compass Airlines in US and British Airline Flybe.
In the Indian context, a report by HSBC said that the domestic aviation companies could post their biggest loss in Q4FY20. The earning results for the final quarter will be closely followed in terms of expenditure and liquidity position. Though, it still maintains a 'Hold' on Spicejet and Indigo, HSBC said that the companies may likely face headwinds in near future.
Zee Business Managing Editor Anil Singhvi said that the only positive for the airline sector is in the form of its energy cost and expects the prices of Air Turbine Fuel to come down.
29/04/20 Harish Dugh/ZeeBiz
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