Covid imapct: Fear of airlines going bust

Budget carrier IndiGo’s decision to retrench 10 per cent of its total workforce because of the impact of the coronavirus pandemic is the “beginning” of a “painful” process and in the prevailing conditions, the possibility of one or more airlines going out of business cannot be ruled out, according to CAPA India.

Besides, third-party investors are unlikely to invest in any airline under the present conditions, and the companies have the only option to seek capital infusion from promoters, it said.

IndiGo, which is the largest carrier by domestic market share, on Monday said it plans to hand over pink slips to 10 per cent of its 23,500-strong workforce amid a lack of demand because of travel restrictions.