Cash-strapped aviation sector to lose more money due to lockdown extension

NEW DELHI : The Indian civil aviation industry, which is already facing a debilitating cash crunch, is expected to lose more money with the government’s decision to extend the countrywide lockdown from 14 April to 3 May.

The grounding of flights has dried up revenue for the sector and the domestic aviation industry will lose millions of dollars more in the coming days because of the continuation of the lockdown imposed to contain the spread of the novel coronavirus.

“The revenue loss of the aviation industry spread across airlines, airports and retail is estimated to be $1-1.5 billion per month of lockdown,” said Jagannarayan Padmanabhan, practice leader and director, transport and logistics, at CRISIL Ltd. “About 70% of this will be borne by the airlines.”