NEW DELHI: A week after estimating that 22.47 lakh jobs are at risk in India’s aviation and related sectors, the International Air Transport Association (IATA) has now indicated that the situation is likely to worsen in the Asia Pacific (APAC) region.
In a new report released on Friday, the IATA estimated that India’s aviation sector is likely to suffer a revenue loss of $11.2 billion this year putting over 29.32 lakh jobs at risk, since passenger demand has fallen by 47 per cent due to Covid-19 pandemic.
“The situation is deteriorating. Airlines are in survival mode. They face a liquidity crisis with a US$61 billion cash burn in the second quarter. We have seen the first airline casualty in the region (APAC). There will be more casualties if governments do not step in urgently to ensure airlines have sufficient cash flow to tide them over this period,” said Conrad Clifford, IATA’s Regional Vice President, Asia-Pacific.
Every airline job supports another 24 in the travel and tourism value chain. In Asia-Pacific, 11.2 million jobs are at risk, including those that are dependent on the aviation industry, such as travel and tourism, he added.
Airlines in India are already in survival mode. From correcting workforce numbers to reaching out to aircraft lessors, airlines are taking whatever steps are available to stay afloat until restrictions on flying are lifted.
The Wadia Group-owned GoAir, for instance, has sent 90 per cent of its employees on leave without pay, while SpiceJet has sent a section of its cabin crew on a leave without pay for three months and cut the salaries by 30 per cent.
IATA’s new estimates are based on a scenario where severe travel restrictions last for three months, with a gradual lifting of restrictions in domestic markets, followed by regional and intercontinental.
Commercial flight services in India were suspended in late March.