Govt help must for airline survival, Indian domestic passenger traffic to drop over 60% in FY 21: CAPA

MUMBAI: As against 137 million Indian domestic passengers in FY 20, the projected passenger traffic for FY 21 is a bare 40-50 million, according to estimates drawn by global consultancy firm, Centre for Asia Pacific Aviation (CAPA). Consequently, the country’s airlines could still have 250-300 surplus aircraft by March 2021, it said putting the consolidated loss for the Indian airline industry at an unprecedented $4 to 4.5 billion in FY 2021.
“Continuing uncertainty with respect to state-by-state quarantine restrictions and the persistent shadow of the possibility of new lockdowns, exacerbates underlying demand risks. Limited hotel capacity and surface transport options further deter travel,” said the CAPA note on financing Indian aviation sector in the post Covid era. The note stressed the need for industry and government collaboration as an essential for survival and revival.
“It is clear that the industry cannot absorb such dramatic declines in traffic alone. Industry and government collaboration is essential for survival and revival,” said CAPA. Referring to US government support, CAPA said that the US CARES support programme was developed with the objective of ensuring that American carriers would be in ‘good shape’ post-Covid.