With free cash reserves of over ₹9,000 crore, the airline has decided to pay heed to the government’s wish of not reducing pay for employees during the lockdown; it had announced pay cuts earlier.
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.
