The Covid-19 pandemic has hit the aviation industry in India hard, causing significant losses in revenue and impacting the livelihoods of employees. In this blog post, we will discuss the present situation of the Indian aviation industry, how it is coping with the pandemic and its future outlook.
Aviation Industry in India Overview
Before the pandemic, the Indian aviation industry was thriving, with new airlines entering the market and existing ones expanding their operations, generating employment, and boosting tourism. However, the pandemic brought everything to a halt, with nationwide lockdowns and travel restrictions leading to a significant decline in revenue.
Impact on the Aviation Industry in India
The pandemic has impacted airlines in several ways, including a drastic drop in demand, leading to airlines reducing their fleet size and suspending routes to cut down on costs. The biggest airline in the nation, IndiGo, recorded a net loss of more than $620 million for the three months that ended in June 2020. Other airlines, such as SpiceJet and Vistara, also reported significant losses.
Impact on Passengers
The pandemic has also affected passengers’ travel plans, with many people having to cancel or postpone their trips due to the lockdowns and travel restrictions. To address passenger concerns and ensure their safety, airlines have implemented several measures, such as mandatory mask-wearing, increased sanitization, and social distancing on flights.
The Indian government has recognized the challenges faced by the aviation industry and has taken several steps to support it. In May 2020, the government announced a relief package worth $618 million for the industry, which included measures such as reducing excise duty on aviation turbine fuel and extending credit lines to airlines.
The government has also announced measures such as the resumption of international flights in a phased manner and the introduction of the “air bubble” concept, which allows travel between certain countries with bilateral agreements.
The aviation industry in India is gradually recovering, but it will take some time to reach pre-pandemic levels. The industry is still dealing with a variety of challenges, including rising fuel costs, intensifying competition, and uncertainties related to the pandemic. However, the industry is expected to witness healthy air traffic growth post-COVID-19 pandemic.
Future Outlook of Aviation Industry in India
According to projections, Indian airlines are expected to earn $14.4 billion in revenue in FY 2023, of which $147.6 billion will come from cargo and ancillaries. The industry is also likely to face challenges caused by the aviation sector’s dependence on the aviation turbine fuel (jet fuel) market. However, the aviation industry is among the fastest-growing in the nation and provides a wide range of job options.
The aviation industry in India has been impacted by the pandemic, but it is slowly making a comeback with the help of government assistance and the sector’s resilience. While we hope for a brighter future for the aviation industry in India, it is essential to continue following safety protocols and taking precautions while traveling to ensure everyone’s safety.
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