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Business News/ News / India/  COVID-19: Indian airlines may ground as many as 150 aircraft
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COVID-19: Indian airlines may ground as many as 150 aircraft

If the decline in traffic continues to be severe, the majority of the fleet could be grounded by April
  • Most airlines have cancelled significant number of international and domestic flights due to travel restrictions
  • Most Indian airlines have cancelled significant number of international and domestic flights (MINT_PRINT)Premium
    Most Indian airlines have cancelled significant number of international and domestic flights (MINT_PRINT)

    NEW DELHI: Indian airlines may ground as many as 150 aircraft as the government restricts travel amid the COVID-19 outbreak, aviation consultancy Capa India said in a report on Wednesday.

    "As a result of the significant reduction in flying, Indian carriers may initially ground around 150 aircraft (including almost all of the international fleet), with this number expected to increase as more domestic operations are curtailed over the coming weeks," Capa India said in a report titled 'Impact of Covid-19 on Indian aviation'.

    "If the decline in traffic continues to be severe, the majority of the fleet could be grounded by April," it added.

    Globally, 8,006 people have died due to COVID-19, while the number of those infected crossed 200,000, according to the latest data by Johns Hopkins University. Many governments, including the US, have implemented a temporary travel ban. Indian government has also imposed a temporary ban on foreigners entering the country.

    Indian airlines, which have been reeling under high costs and a weak travel appetite before the outbreak of the virus, have been forced to cancel or curtail international operations.

    Most Indian airlines have cancelled a significant number of international and domestic flights as travel restrictions hit transport and tourism sectors.

    "As a result, even before COVID-19 appeared on the scene, most Indian carriers already had very strained balance sheets and almost no liquidity. This latest shock will once again expose the vulnerability of India’s aviation system as happened during the fuel price spike in 2008," Capa India said In the report.

    "But on that occasion the shock was short-lived, even if its impact reverberated for several years. This time, the shock itself will be far deeper and much longer,' it added.

    Full service carrier Vistara, a joint venture between Singapore Airlines and Tata Sons, has suspended international operations on Wednesday.

    “Due to the unprecedented impact of the Covid-19 pandemic on border controls and air travel across the world, Vistara is temporarily suspending its international operations from 20 March 2020 to 31 March 2020. The airline has also temporarily adjusted domestic capacity for the months of March and April 2020 in view of reduced demand," the airline said in a statement.

    Other airlines like GoAir has also suspended its international operations temporarily. IndiGo has also cancelled a large part of its international operations.

    Aviation industry lobby group The International Air Transport Association (IATA) has warned that the COVID-19 outbreak, if not contained, could cost airlines as much as $113 billion in revenue loss.

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    Published: 18 Mar 2020, 05:31 PM IST
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