- Airlines Industry Needs $ 3.5 Billion Capital
- Only two to three aircraft companies can remain in the future
Jul 03, 2020, 08:59 PM IST
Mumbai. Consulting firm CAPA India has said that the Indian aviation sector could suffer losses of up to $ 4 billion in FY 2021. Earlier, a deficit of $ 3.6 billion was anticipated. In a report, CAPA India has also talked about the need for more money for Indian airlines. This need has now increased from $ 2.5 billion to $ 3.5 billion.
The number of airlines can be reduced later
This firm has said that at present there are half a dozen airline companies like Indigo Air India SpiceJet and Go Air. Going forward, this sector can be limited to only two or three companies. It further stated that there is greater scope of consolidation in the aviation sector. This may lead to restructuring of the entire industry. If they are not recapitalized in time, then only two or three companies can survive in the airline market.
Flights start 25 May
Demand is showing softening in the domestic market. The report further states that the second quarter, like the first quarter, can also be completely washed out. Significantly, after lockdown, airlines have been allowed to fly from May 25. However, this sector has been opened mostly for the much needed traffic. It opened for those who were stuck on the spot due to a sudden lockdown.
At present, one way booking is being done
The report states that the trip has been limited. This is because before the Corona outbreak, 40% of the bookings were for both ways but now after the corona 90% of the bookings are for one way travel ie Oneway. However, the government has allowed airlines to operate up to 45 percent. It has made a difference. CAPA India said the fare has been limited. If this was not the limit of the regulator then anything could have happened. This could also benefit airlines