Second wave could result in collapse of aviation space: Capa

The second wave of infections, which has brought the country’s healthcare system to its knees, could precipitate a collapse of domestic aviation sector, aviation consultancy firm Capa India said in a report on Monday.

This will also accelerate consolidation in the industry, resulting in two to three airlines operating in the domestic sector, down from six major airlines and three regional carriers that currently operate in the space, said the report titled ‘Key Trends in Indian Aviation in FY2022: Impact of Second Wave.’

“Most Indian airlines were already very vulnerable prior to the outbreak, with weak balance sheets and poor liquidity. Covid inflicted massive losses and led to an increasing debt burden on carriers that were structurally ill-equipped to absorb this impact,” it said.