As global aviation continues to grapple with the largest demand shock in history, India is no exception. With closed borders, demand for international air travel has evaporated. Domestic demand is showing large variability, and corporate demand is at an all-time low. The corona crisis comes at a time when the country is also dealing with slowing economic growth, rapid digitisation and constrained budgets. Add to that the asset light balance sheets, voluminous aircraft orders, a weakening currency, limited mitigation measures and extremely price-sensitive market.
At least two airlines are flying with a few days of cash, and the only certainty is that of uncertainty. The industry continues to fly, but it is locked into an unstable approach. Without a course correction—a hard landing could very well be the outcome.
