Liquidity buffers will cushion airports against COVID-19 scare in the short term, says India Ratings
Indian airports have adequate liquidity buffers to weather short-term passenger volume (pax) disruptions stemming from the COVID-19 pandemic, says India Ratings and Research.
The coronavirus outbreak has transformed the way the airline business operates and has reshaped travel plans. A significant dip in pax has been visible in international flights during February and March 2020, due to visa cancellations, rerouting/flight cancellations and a complete embargo on international flights from March 22.
In addition, the domestic travel business could see a decline due to the spread of the virus in India and various State governments imposing restrictions on non-essential travel.
