New Delhi: Facing economic headwinds in the wake of the COVID-19 pandemic, private-sector airlines in India have announced salary cuts. Indian air carrier Spicejet recently cut salaries some 10-30 percent. In March, Indigo announced a salary cut, while GoAir dismissed staff for “leave without pay”.
The COVID-19 pandemic has distorted the global economy and, while no sector will remain untouched, aviation, hospitality and tourism are likely to be some of those worst hit.
India's aviation sector is projected to contract in the financial year 2020-21 and airlines will see deep financial losses, suggest research agency analysis and projections.
In one estimate, the Indian aviation industry is likely to see a loss of some $3-3.6 billion between April and June of this year.
“Domestic traffic is expected to decline from an estimated 140 million in financial year (FY) 2020 (April 2019-March 2020) to around 80-90 million in FY2021. International traffic is expected to fall from approximately 70 million in FY2020 to 35-40 million in FY2021", the Centre for Asia Pacific Aviation aviation consulting and research data firm (CAPA) in India said, in a report titled ‘COVID-19 and the State of the Indian Aviation Industry” on Monday.
The report also points out aviation companies will have 200-250 surplus aircraft over the next six to 12 months, due to the sharp decline in travel.
“Indian carriers will require a domestic fleet of around 300-325 aircraft from October-2020 onwards, and an international fleet of 100-125 aircraft. The total fleet size of 400-450 aircraft would still mean that the current fleet of 650 represents a surplus of 200-250 aircraft for a period of 6-12 months," the report said.
The United Nations Conference on Trade and Development (UNCTAD) pointed out in its March report, titled “Impact of the COVID-19 Pandemic on Global FDI”, that cash losses for the aviation sector would be extremely high.
06/04/20 Sputnik
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The COVID-19 pandemic has distorted the global economy and, while no sector will remain untouched, aviation, hospitality and tourism are likely to be some of those worst hit.
India's aviation sector is projected to contract in the financial year 2020-21 and airlines will see deep financial losses, suggest research agency analysis and projections.
In one estimate, the Indian aviation industry is likely to see a loss of some $3-3.6 billion between April and June of this year.
“Domestic traffic is expected to decline from an estimated 140 million in financial year (FY) 2020 (April 2019-March 2020) to around 80-90 million in FY2021. International traffic is expected to fall from approximately 70 million in FY2020 to 35-40 million in FY2021", the Centre for Asia Pacific Aviation aviation consulting and research data firm (CAPA) in India said, in a report titled ‘COVID-19 and the State of the Indian Aviation Industry” on Monday.
The report also points out aviation companies will have 200-250 surplus aircraft over the next six to 12 months, due to the sharp decline in travel.
“Indian carriers will require a domestic fleet of around 300-325 aircraft from October-2020 onwards, and an international fleet of 100-125 aircraft. The total fleet size of 400-450 aircraft would still mean that the current fleet of 650 represents a surplus of 200-250 aircraft for a period of 6-12 months," the report said.
The United Nations Conference on Trade and Development (UNCTAD) pointed out in its March report, titled “Impact of the COVID-19 Pandemic on Global FDI”, that cash losses for the aviation sector would be extremely high.
06/04/20 Sputnik
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