India Aviation Sector Staring At 2.2 Million Jobs Loss, $3-3.6 billion Losses In June Quarter
India’s aviation industry is in tatters. The sector is staring at 2.2 million people losing jobs if not urgently assisted by the government amid the COVID-19 pandemic.
Globally, about 25 million jobs worldwide are at risk of disappearing with plummeting demand, with Asia-Pacific worst hit.
The industry is expected to post losses of $3-3.6 billion in the June quarter with airlines sharing the bulk of the hit because of the travel curbs and falling air travel demand because of covid-19, aviation consultancy CAPA India said in a report.
Domestic carriers are forecast to post losses of about $1.75 billion next quarter, followed by airports and concessionaires with losses of between $1.5 billion and $1.75 billion, Capa India said.
The Federation of Indian Chambers of Commerce and Industries (FICCI) has urged the government to bail out the industry. The government is mulling up to $1.6bn in relief to airlines which will comprise deferred tax payments.
However, FICCI wants a broader package which includes reduction in airport charges and overflight fees, a temporary cut in excise duty on jet fuel and more financial aid.
According to CAPA India, domestic carriers are forecast to post losses of about $1.75 billion next quarter, followed by airports and concessionaires with losses of between $1.5 billion and $1.75 billion.
Meanwhile, minister of Civil Aviation, Hardeep Singh Puri, has already indicated that “News about resumption of passenger flights in a staggered manner from 15 April is mere speculation”.
Worldwide, airlines are expected to see full year passenger revenues fall by $252 billion (-44%) in 2020 compared to 2019. The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through $61 billion in cash, says IATA.
Airlines are calling on governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained. Specifically, IATA calls for direct financial support and loans, loan guarantees and support for the corporate bond market
The industry is expected to post losses of $3-3.6 billion in the June quarter with airlines sharing the bulk of the hit because of the travel curbs and falling air travel demand because of covid-19, aviation consultancy CAPA India said in a report.
Domestic carriers are forecast to post losses of about $1.75 billion next quarter, followed by airports and concessionaires with losses of between $1.5 billion and $1.75 billion, Capa India said.
The Federation of Indian Chambers of Commerce and Industries (FICCI) has urged the government to bail out the industry. The government is mulling up to $1.6bn in relief to airlines which will comprise deferred tax payments.
However, FICCI wants a broader package which includes reduction in airport charges and overflight fees, a temporary cut in excise duty on jet fuel and more financial aid.
According to CAPA India, domestic carriers are forecast to post losses of about $1.75 billion next quarter, followed by airports and concessionaires with losses of between $1.5 billion and $1.75 billion.
Meanwhile, minister of Civil Aviation, Hardeep Singh Puri, has already indicated that “News about resumption of passenger flights in a staggered manner from 15 April is mere speculation”.
Worldwide, airlines are expected to see full year passenger revenues fall by $252 billion (-44%) in 2020 compared to 2019. The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through $61 billion in cash, says IATA.
Airlines are calling on governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained. Specifically, IATA calls for direct financial support and loans, loan guarantees and support for the corporate bond market
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