Private airport operators seek government aid as COVID second wave shatters aviation industry

In a statement, it said the first wave had already wiped-out air traffic in FY 2020-2021 and the second wave has further compounded the crisis as domestic passenger traffic has dropped.
For representational purpose. (Photo | PTI)
For representational purpose. (Photo | PTI)

NEW DELHI:  Private airport operators are seeking immediate financial assistance from the government in order to sustain operations and prevent job losses in the sector. Airports are currently not generating sufficient cash flows to sustain operations and meet their debt obligations.

Poor cash flows and, consequently, downgraded credit ratings have made it impossible for airports to take further financing support from financial institutions, said Association of Private Airport Operators (APAO) whose members include operators of Delhi, Mumbai, Lucknow, Hyderabad and Bangalore airport. 

All these airports are run by big names such as the Adani Group and GMR Group.  

“As the cash flow situation is precarious, airports have been requesting the government amidst an extremely challenging environment to provide some relief measures to the airport operators which will directly alleviate the financial burden for airports. Relief measures are required not only to ensure sustaining operations at airports, but also needed to save jobs and allow economic recovery of the airport sector,” said APAO on Wednesday. 

This cry for help comes even as airports are accused of raising fees in recent times.

Last week, a controversy erupted when Adani Group reportedly raised charges, by as much as 10 times, including turnaround charges of international flights and private jets at Lucknow airport.

Adani later revoked the charges, saying they were levied by the ground-handling company.  

The association said that while the first wave of the pandemic had wiped out traffic in FY21, denting the financials of the airports, the onset of the second wave has further compounded the crisis since domestic passenger traffic has dropped to less than 18- 25 per cent of pre-Covid levels.

Furthermore, international traffic, which is invariably the high-yield segment for airports, has been suspended for the last 14 months and there is no sign that scheduled, usual, operations will be resumed in the near future. 

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