Aviation sector needs urgent plan to deal with crisis: CAPA-India asks government to intervene

For the second time in a month, aviation consultancy Centre for Asia Pacific Aviation (CAPA) – India, on Monday reiterated that the Indian aviation industry needs an immediate plan to deal with the ongoing financial crisis and warned that the sector is headed for a “challenging future” owing to the restrictions imposed by the government.

In a series of tweets, CAPA- India said, “Indian aviation is headed for a very challenging future given the regulatory constraints imposed on the sector 1) domestic capacity limited to 45% 2) fare bands extended for three months 3) int’l travel restricted to a handful of travel bubbles. The situation is exacerbated by the fact that demand is very weak. Load factors are just 50-55% even with limited operations. And all this is happening at a time when most carriers have no cash and raising capital is very challenging. The viability of Indian aviation will be critical to support India’s economic recovery post-COVID.”