In light of the global outbreak of Covid-19 and the following travel restrictions imposed by several countries, airline companies have seen their worst loss. To face the same, carriers have now approached the government seeking relief packages that would help in minimising the blow.
Sources close to the matter suggest that the relief package in question includes a waiver of landing and parking charges and payment to oil marketing companies, a limited period concession of the standing rule of slot allocation, which mandates that firms must operate at least 80 per cent of their allocated slots.
According to recent research conducted by global aviation consultancy firm CAPA, most airlines across the world will go bankrupt by May if governments do not take necessary action.
" Cash reserves are running down quickly as fleets are grounded and "what flights there are operate much less than half full", it added. "Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon," it said.
India's largest airline IndiGo, which has around 260 planes in its fleet, said on Thursday that it has seen a decline of 15-20 per cent in daily bookings in the last few days. The low-cost carrier had stated that it expects its quarterly earnings to be materially impacted due to such decline. CAPA said the failure to coordinate the future will result in protectionism and much less competition. "The alternative does not bear thinking about. An unstructured and nationalistic outcome will not be survival of the fittest.