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

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.