Mumbai: Some domestic airlines, that were already facing financial stress, are staring at an existential crisis in the wake of the coronavirus pandemic, a report said on Thursday.
Indian carriers are expected to incur combined losses of Rs 5,100-6,100 crore in the period between March 25 and May 31, with their per-day loss averaging around Rs 75-90 crore, rating agency Icra said as commercial flight services remain suspended since March 25.
“While some airlines have sufficient liquidity and/ or financial support from a strong parentage, which will help them sustain over the near term, some airlines, which were already in financial stress, are facing (an) existential crisis,” Icra said.
Many airlines have already started undertaking salary cuts for their employees, including leave without pay and laying off pilots and crew members to cut costs.
However, until the cash inflows resume, the airlines would require funding support to meet their expenses, it said in a report.
GoAir has sent its staff, including pilots, on leave without pay till May 31. AirAsia India has cut its employees’ April salary by up to 20 percent.
Vistara too has announced reduced salaries for its employees for May and June. SpiceJet has also taken various cost-cutting initiatives.
07/05/20 PTI/Telangana Today
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Indian carriers are expected to incur combined losses of Rs 5,100-6,100 crore in the period between March 25 and May 31, with their per-day loss averaging around Rs 75-90 crore, rating agency Icra said as commercial flight services remain suspended since March 25.
“While some airlines have sufficient liquidity and/ or financial support from a strong parentage, which will help them sustain over the near term, some airlines, which were already in financial stress, are facing (an) existential crisis,” Icra said.
Many airlines have already started undertaking salary cuts for their employees, including leave without pay and laying off pilots and crew members to cut costs.
However, until the cash inflows resume, the airlines would require funding support to meet their expenses, it said in a report.
GoAir has sent its staff, including pilots, on leave without pay till May 31. AirAsia India has cut its employees’ April salary by up to 20 percent.
Vistara too has announced reduced salaries for its employees for May and June. SpiceJet has also taken various cost-cutting initiatives.
07/05/20 PTI/Telangana Today
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