A day after IndiGo announced that it would lay off 10% of its employees owing to the financial crisis caused by the Covid-19 pandemic, the Centre of Asia Pacific Aviation (CAPA India) – a global aviation consultancy – on Tuesday predicted that the shutting down of one or two Indian airlines would be unavoidable in the near future.
“Industry conditions are such that one or more airline failures appear inevitable. Airlines have limited options to turn to for funding except their promoters, given that 3rd party investors will be reluctant to provide capital right now, and the government is unwilling to do so,” read a tweet from CAPA.
CAPA India stated that the decision is the “beginning of a painful process for Indian aviation”. “The decision by IndiGo to lay off 10% of its staff is the beginning of a painful process for Indian aviation as things start to unravel from the impact of Covid-19 in India. It will be impossible to survive this crisis without a strong balance sheet,” read CAPA’s another tweet.
