Indian carriers, except IndiGo, need to raise $2.5 bln to survive grounding
NEW DELHI: Indian airlines, excluding market leader IndiGo, will need to raise a minimum of $2.5 billion to survive the grounding due to the lockdown imposed to contain covid-19 pandemic, aviation consultancy firm CAPA India said in a report on Friday.
“IndiGo is well-placed in terms of cash reserves ($1.13 billion of free cash and $1.33 billion of restricted cash) compared with other Indian carriers. However, it too is not immune to risks in the event of a prolonged crisis,” CAPA India said in its latest report– Indian aviation faces massive disruption on the road out of COVID.
It said the $2.5 billion fresh capital infusion for airlines will only be sufficient for them to survive until the market starts to turn around, and additional funds could be required for recovery.
