Airlines will continue to report Rs 75-90 crore loss per day due to the lockdown
NEW DELHI: Despite airlines showcasing their plans to safely resume services in the wake of Coronavirus outbreak, government of India felt it is too early to lift travel restrictions. Directorate General of Civil Aviation (DGCA) on Tuesday clarified that domestic and international flights will remain suspended till May 3.
The extended lockdown will add to sector’s woes whose revenues have been hit due to halt in commercial flights across India and abroad. According to Kinjal Shah, Vice President at ICRA, industry will report a net loss of Rs. 75-90 crore per day.
“The Indian aviation industry is characterised by high fixed costs. ~35-42% of the airlines” expenses are fixed. Considering the operating expenses of the Indian aviation industry (aggregate of Air Asia India Limited, Air India Limited, Go Airlines (India) Limited, Interglobe Aviation Limited, Tata SIA Airlines Limited and SpiceJet Limited), it is estimated that the industry will report a net loss of ~Rs. 75-90 crore per day of shutdown of operations,” Shah told this publication.
