NEW DELHI: Hit hard by the coronavirus outbreak, airlines are asking the Indian government to reduce aeronautical tariff by 30 per cent for the next six months to tide over their huge losses and cancelled flights.
"We would, like to appeal to your office to offer relief measures to the airlines, by means of 30 per cent reduction in aeronautical charges for a period of six months... The airlines are (facing) the brunt of a recessionary situation with decrease in private demand," Board of Airline Representatives in India (BALR), whose members include some 36 airlines- domestic and international - said in a letter to aviation ministry.
Aeronautical tariff comprises cost related to route and terminal navigation services.
BALR added that the ongoing situation is causing a lot of concern, due to flight cancellations and travel restrictions, imposed by various countries. "It is becoming difficult to sustain flight operations, thereby affecting the load factors of all airlines," it said.
Demand for air tickets has nosedived in recent weeks as India imposed travel restrictions on flights from affected countries to control the pandemic. So far, the virus has affected around 140 people in India and killed three. The DGCA's appeal to airlines to pass on prompt refunds to passengers, without deducting cancellation charges has added to cash woes faced by the airlines.
The situation is so tense for airlines that on Tuesday GoAir decided to stop all international flights for a month. The budget carrier said it will send some of its employees on leave without pay to survive the challenging environment.
"...forced to take certain measures - we are temporarily suspending all our international operations, starting March 17, 2020 until April 15, 2020. GoAir has also initiated a short term and temporary rotational leave without pay program that will not only help the company counter the short-term reduction in capacity, but will also ensure that a cross-section of our employees stay away from the workplace to ensure business continuity," GoAir said in a statement.
Air India and IndiGo also announced cancellation of several international flights following the suspension on all tourist and e-visas to India.
Indigo has cancelled several flights to West Asia (Dubai, Sharjah, Abu Dhabi) from March 17 until the travel restrictions are lifted. To fill empty seats, airlines have restored to flash sales, where one-way ticket prices starts at as low as Rs 987 (SpiceJet).
Not just domestic carriers, airlines around the world, are struggling to remain operational. According to aviation consultancy body CAPA cash reserves of airlines are running down quickly as fleets are grounded and what flights there are operate much less than half full.
It expects by the end of May-2020, most airlines in the world will be bankrupt.
Also See: