IndiGo’s decision to lay off staff is the beginning of a painful process for Indian aviation: CAPA
A day after IndiGo announced it would lay off 10% of its employees, the Centre of Asia Pacific Aviation (CAPA India) – a global aviation consultancy – predicted the failure of one or two Indian airlines would be unavoidable in the near future.
CAPA India said IndiGo’s decision to lay off workers due to the impact of the Covid-19 crisis is the beginning of a painful process for Indian aviation.
CAPA tweeted on Tuesday: “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.”
On July 20, IndiGo, India’s largest airline by market share, announced the lay-offs due to the pandemic.
