Mumbai: One or more Indian carriers may head to the National Company Law Tribunal once the suspension of the bankruptcy law is lifted at the end of March, said the Centre for Asia Pacific Aviation (CAPA), an aviation consultancy firm. On Monday, the firm released a list of trends to watch out for in 2021.
To help businesses hit by the pandemic, the government had suspended the Insolvency and Bankruptcy Code last year, and later extended the suspension to March 31, 2021. Without significant recapitalisation, atleast one Indian carrier, if not more, will head towards bankruptcy.
The other big trend would be “consolidation” . “Consolidation is inevitable and will be strategic in nature. It could result in a 2-3 airline system in the near term,’’ said the CAPA 2021 trends report, adding that Air India’s privatisation is likely to be successful by the end of 2021. The Indian airline sector will be completely private then. Tata Sons will increase its shareholding in AirAsia India from its recent 84% to 100%, it predicted.
“The structure of competition may change in the near to medium term, possibly resulting in a two-horse race in both the airline and airport sectors.
