NEW DELHI: The aviation monitoring body, CAPA India, on Wednesday warned that unwillingness of promoters, bankers and government to provide support to the aviation industry will impact the air connectivity as well as the economic recovery. It has also said the industry’s financial challenges will become increasingly apparent from September/October.
“The industry’s financial challenges will become increasingly apparent from Sep/Oct. Promoters, bankers, private equity, & government are all unwilling to provide support given demand risk & uncertainty,” CAPA India said.
It reiterates that this could have an unprecedented impact on air connectivity, and on economic recovery. “The two critical elements for the industry to survive and navigate this crisis are demand (traffic risk) and capital,” it said.
Airports, including Delhi, Bangalore, Hyderabad, Chennai, Kolkata, Mumbai and others have recorded poor passenger traffic and flights operation as the domestic aviation took off post lockdown on May 25. Domestic flight operation plunged to historic lows of nearly 70-80% in June.
The airports authority of India said that domestic aircraft movements at all the airports witnessed a decrease of 87.5% during (April- June) 2021-21 as compared to (April- June) 2019-20. Similarly, domestic passengers have decreased by 93.5% during the period (April- June) 2020-21 as compared to (April- June) 2019-20, as per the AAI. All the major airports including those at metro cities received few air-passengers.