Covid-19 crisis has severely impacted almost all industries but disruptions in the airline industry is so profound that it is assumed to be greater than the combined crises of 9/11 and the 2008 global financial put together. The Government of India (acting through DGCA) (“GoI”) has vide its (i) order dated March 23, 2020 passed under Section 88(1) of the Aircraft Act, 1934; and (ii) orders dated March 26, 2020 and April 14, 2020 directed inter alia all aircraft operators to suspend the operations of all the domestic flights and all scheduled international commercial passenger services until May 3, 2020. The forward air travel bookings are far outweighed by the cancellations. Air travel demand is drying up in ways that are unprecedented with no semblance of normalcy on the horizon. For an industry which is already stressed, Covid-19 has only accelerated the process of bankruptcy filing by several companies (like Virgin Australia and Air Mauritius). Those airline companies which are still in business have also suffered misfortunes as coronavirus-forced lockdowns have kept their fleets grounded. Per the market sources, apart from the pay cut, several airline companies (Indigo, Go Airlines) have also taken other cost cutting measures including furloughs.
Continue Reading Covid-19: Flight Plan for Indian Aviation Industry