Sunday, August 23, 2020

Coronavirus-hit aviation industry requires USD 5 bn capital infusion to stay afloat: CAPA

Mumbai: Coronavirus-hit domestic aviation industry requires a capital infusion of around USD 5 billion to keep it afloat as expected consolidated industry losses may stand at USD 6-6.5 billion this fiscal, an aviation consultancy and advisory firm has said.
However, structural issues, including the prevailing uncertainty, are unlikely to help them take advantage of the low crude prices and excess liquidity both globally and in India, and raise these funds, according to a presentation by the Centre for Asia Pacific Aviation (CAPA).

Aviation companies including in India are facing headwinds with many international airlines either going belly up or in administration for want of liquidity amid slump in air travel demand and continued curbs on visa and movement restrictions owing to the coronavirus pandemic.

Budget carrier IndiGo, which is one of the two listed airlines along with SpiceJet in India, reported its highest ever quarterly loss at Rs 2,844 crore in the April-June quarter while SpiceJet has not yet announced its June quarter results.

"COVID-19 will inflict an unprecedented financial impact on the industry. Airlines are the most vulnerable, with some carriers at breaking point," CAPA said.

According to it, the consolidated industry losses are likely to stand at around USD 6-6.5 billion in FY2021, excluding airport concessionaires and other ancillary sectors, and an estimated USD 4.5-5 billion of funding will be required to overcome this crisis, mostly for airlines.
23/08/20 PTI/Outlook
To Read the News in full at Source, Click the Headline


Post a Comment