Aviation - Being Indian

Airlines are evaluating their expat pilots strategy to pare costs and rationalising route planning

- Manu Kaushik

Just last month, at an event in New Delhi, Aviation Minister Hardeep Singh Puri was fairly confident about selling 100 per cent stake in Air India. While distributing the letters of appreciation issued by Prime Minister Narendra Modi to Air India staff for evacuation of Indians from China's Wuhan city, the minister said there would be no problem in Air India's disinvestment this time. In January, the government had floated a sale document for the national carrier, its second such attempt in less than two years, as the last effort had failed to receive any response. Little did the minister know that a country-specific disease (at that time) would grow so big to not just potentially derail Air India's disinvestment but also put the domestic and international aviation sector on a ventilator.

The government's decision to suspend all commercial and chartered flights for 21 days till April 14 due to coronavirus threat has led to grounding of nearly 1,040 aircraft (including helicopters) and cancellation of thousands of flights within India and overseas. While airlines are not sure if the suspension will extend beyond April 14, they are bracing for tough times ahead. The cost of groundings is expected to be up to $3.6 billion (Rs 27,090 crore) in just one quarter, as per aviation industry consultancy CAPA. This includes $1.75 billion losses for airlines, up to $1.75 billion for airports and concessionaires, and up to $90 million for ground handlers. If the shutdown continues for three months, IndiGo and SpiceJet alone may report combined losses of up to $1.5 billion (Rs 11,288 crore) in March and June quarters, says CAPA.