Covid impact: Indian carriers risk consolidation, plane repossessions

Indian carriers are under renewed pressure to raise cash or face the risk of having to downsize, consolidate or have their planes repossessed by lessors as a surge of Covid-19 infections roils travel.

Passenger traffic fell nearly 30 per cent in April from a month before and has halved again so far in May, forcing even the country’s biggest and most cashed-up carrier, IndiGo, to gear up for the storm.

IndiGo’s parent, Interglobe Aviation, will meet on Friday to consider an equity raising, just months after it abandoned plans to raise up to 40 billion rupees ($543 million) in January due to a speedy recovery in travel.