India’s civil aviation sector may continue to languish in the near to medium term as demand is expected to stay muted with cost-conscious corporates restraining employees from travelling while coronavirus fears and the impact on household incomes affect the demand for leisure travel.
The tepid demand over the next six months to a year will prove to be the biggest challenge for cash-strapped airlines in continuing their services, according to industry experts. India on 25 May lifted a two-month ban on domestic flights with strict restrictions and safety measures. Also, airlines have been allowed to use only a third of their summer schedule for 2020.
Experts said the present demand is mostly from people who were stuck in various parts of India because of the lockdown imposed to check the spread of coronavirus. This demand, the experts said, may taper off in the coming months.
