Coronavirus has impacted the aviation industry the most as it has crippled the travel of people around the globe. Flights had been flying empty and there has been a surge in cancellation.

The aviation industry has been crippled completely as travel restrictions have been imposed and the Indian aviation industry saw a crash of 40% on certain routes. As per CAPA, private domestic carriers are expected to face a loss of 4500 crores in one quarter.

The national carrier Air India is expected to have a loss of 3700 crores during this quarter. Air India is the worst-hit air carrier and the proceedings for privatization are likely to get postponed.

Airbus A320, would carry 180 passengers, but during mid-March the passenger count from Bangalore to Mumbai fell to 8 passengers. Many Airlines also have the issue of getting parking spot in many cities and countries.

30% of the flights are likely to lose their spot due to non-compliance with travel and flight schedule. Every Airline is hoping that their fate won’t be like Jet Airways which suspended operations in April 2019. India has banned all domestic and international travels from March 25 2020 to April 14 2020 to contain the spread of the virus.

Go Air is close to the fate of Jet Airways, as it has cut down 35% of its employees and has sent them home with no pay. It has also terminated the contract of ex-pat pilots.

CEO of Indigo Airlines, Ronojoy Datta has announced pay cuts, starting with himself, pilots, crew members and executives. Many senior pilots have complained that the situation has changed dramatically, as two weeks prior they worked overtime by surrendering their leave, and now there’s no extra pay, a pay cut in salaries and uncertainty of jobs.

CAPA released a report on March 18, 2020, that the airline yield started falling in February by 5-10%. By March the decline was 15%. Advanced booking has fallen by 30%. More than 150 airlines are grounded, 30% of airline staff and 50% of ground staff can lose their jobs.

Due to international restrictions, the two most crucial market routes- Europe and the Middle East has cut a lot of revenue for the airlines. Due to cash crunch, many airlines are offering credit-based travel instead of refunding the cancelled tickets as cash is essential for the survival of the airlines. Many airlines have extended the credit availability from a 6-month window to almost a year.

Globally, UK budget carrier Flybe has collapsed, LATAM Airlines, South America’s largest airlines has canceled 90% of the flights, America’s major Delta Airlines has grounded 600 flights and 70% of its staff.

To cut costs in the future, many staff members won’t be receiving excessive training sessions and recruitment of staff would fall drastically. Airbus and Boeing would also be severely hit as many air carriers would cancel the deal of new planes to sustain and recover losses.

Globally, the revenue loss in the airline industry accounts for $113 billion. The Indian government is planning a relief package for the airline industry of $1.6 billion with the deferment of taxes due to coronavirus.

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