Indian carriers currently have just under 800 aircraft on the order, of which IndiGo accounts for 500. The number to increase to close to 1,300 if the Air India order materialises.
Indian aviation is flying through heavy turbulence despite the government’s pro-industry directives. And the surge in Covid-19 cases across India is making matters worse.
While Jet Airways has found investors in UK-based Kalrock Capital, and UAE-based entrepreneur Murari Lal Jalan, the impact of Covid-19 on the aviation industry could derail its second take-off.
According to the aviation consultancy firm, only emergency and essential air travel is happening at present, which isn’t good news for Indian airlines.
The MoCA asked airlines to fully refund passengers on their domestic and international ticket cancellations for purchases made between March 25 and April 14 and for travel between March 25 and May 3.
Governments all over the world have announced billion-dollar bailouts for their domestic airlines. In India, without government support, the industry will collapse, says a senior airline executive.
As an impact of Covid-19, CAPA India says domestic traffic will drop to 80 million-90 million and international traffic to 35 million-40 million in FY21.
Consultancy firm CAPA India says the impact of Covid-19 on air travel could possibly lead to a structural reset of the aviation industry, which could incur losses of $3.3 bn to $3.6 bn in Q1FY21.
Even as the domestic market penetration of low-cost carriers reaches 80%, in reality the operating environment makes it difficult for airlines to be genuinely low-cost.
