Friday, July 03, 2020

Covid impact on aviation to continue for a while: Vistara CCO

Mumbai: The current phenomenon of the dip in operations in the aviation sector is likely to continue for a while but the demand would surely recover at some stage, said Vinod Kannan, the Chief Commercial Officer of Vistara (Tata-SIA Airlines) to ET NOW on Friday.

While the operations have been affected by the COVID disruption, Vistara remained confident that demand for international travel would slowly, but surely experience a surge similar to the one seen in domestic travel after the domestic operations resumed on May 25. But Vinod Kannan maintained that there was no clear timeline for demand recovery. India has extended a ban on international flights till July 31.

The aviation sector has been badly affected by COVID as well as a lockdown. The prospects in the sector have been a matter of debate over the past few months, not just in India but also globally. In fact, the Oracle of Omaha Warren Buffett, told during Berkshire Hathaway's annual shareholder meeting on May 2, 2020 that the conglomerate sold its entire equity position worth over $4 billion in the US Airline Industry. Ever since the ace billionaire value investor remarked that 'the world has changed for the airlines', the sector's future has become a major talking point.

India's civil aviation industry is one of the fastest-growing industries. India is not only the fastest-growing aviation market in terms of domestic tickets sold, but also the third-largest aviation market in the world with an RPK (Revenue Passenger Kilometre) roughly thrice that of the world, 18.6% to 6.5% in 2018. India's aviation market is expected to cater to over 52 crore people by 2037 and as such, the aviation sector contributes $72 billion to the overall GDP.
03/07/20 Bharath R/
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