That would reverse
the growth trend of around 11 per cent per annum, which the industry has logged
over the past ten years, making it one of the most adversely-affected sectors
of the economy.
Illustration: Dominic Xavier/Rediff.com
The domestic aviation
industry, which has been severely hit by the coronavirus outbreak and the
subsequent lockdown, is expected to crash-land this fiscal with a massive
revenue loss of Rs 24,000-25,000 crore, a Crisil report said on Thursday.
Airlines will be the
worst-affected segment, contributing more than 70 per cent to the losses
(around Rs 17,000 crore), said Jagannarayan Padmanabhan, director and practice
leader, transport and logistics, Crisil Infrastructure Advisory, during a
webinar.
Airport operators are
likely to suffer losses worth Rs 5,000-5,500 crore and airport retailers will
see a hit of Rs 1,700-1,800 crore, he noted.
Crisil estimates indicate
that the Indian aviation industry will “crash-land this fiscal”, witnessing a
revenue losses worth Rs 24,000-25,000 crore.
That would reverse the
growth trend of around 11 per cent per annum, which the industry has logged
over the past ten years, making it one of the most adversely-affected sectors
of the economy, the agency said.
Projecting higher losses
for the industry, if travel restrictions last longer in hubs such as Mumbai,
Delhi, Chennai and Kolkata, Crisil said it expects the aviation sector to take
at least 6-8 quarters to reach pre-pandemic levels.
“These are preliminary
estimates, and aggregate losses could increase if the lockdown is extended
beyond the first quarter,” Padmanabhan said, adding that as and when operations
resume, overall operational capacity will hover at 50-60 per cent for the rest
of the fiscal.
Consequently, mergers and
acquisitions of airlines, and relook at expansion plans of private and upcoming
greenfield airports would be possibilities, he noted.
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