How India’s domestic airlines are getting by without a bailout

Running an aviation business is tough even under normal conditions. With the pandemic, the industry is gasping for breath. Unsurprisingly, airlines across the world have sought government support to cope with the crisis. According to the International Air Transport Association, or IATA, airlines worldwide were estimated to have received $123 billion of government aid as of mid-May.

In India, airlines have been largely left to fend for themselves. This begs the question of how they have managed to survive so far, especially as some of them had no cash reserves to speak of before the crisis.

“Globally, all airlines are getting some or the other form of leeway or moratorium on the payment of lease rentals, and Indian airlines, too, are likely to receive this. Employee costs have been curtailed through salary cuts or at worst, job cuts,” said Mahantesh Sabarad, head of retail research, SBICAP Securities Ltd.