News

CRISIL forecasts loss of Rs 25,000 crore for Indian Aviation

CRISIL’s reports indicate a revenue loss of Rs 24,000–25,000 crore for the aviation industry in India.

Airlines will be the worst-affected, contributing more than 70% of the losses, or Rs 17,000 crore, followed by airport operators with Rs 5,000-5,500 crore, and airport retailers (including retail, food and beverages and duty-free) with Rs 1,700-1,800 crore.

That would reverse the trend growth of 11% per annum the industry has logged over the past ten years, making it one of the most adversely affected sectors of the economy.

What’s worse, the losses will climb if travel restrictions last longer in hubs such as Mumbai, Delhi, Chennai and Kolkata. CRISIL expects the aviation sector will take at least 6-8 quarters to reach pre-pandemic levels.

Says Jagannarayan Padmanabhan, Director and Practice Leader, Transport & Logistics, CRISIL Infrastructure Advisory, “These are preliminary estimates, and aggregate losses could increase if the lockdown is extended beyond the first quarter. As and when operations resume, overall operational capacity will hover at 50-60% 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.”

Related posts

Sayaji Morbi, a 97-room, new lifestyle hotel expands Sayaji's presence in Gujarat

With the announcement of Sayaji Morbi, Sayaji Hotels Ltd have expanded their presence in Gujarat.

Aisha Faiz appointed as new Chief Operating Officer for Sun Siyam group of companies

Sun Siyam has appointed Aisha Faiz as Chief Operating Officer for its group of companies. Aisha Faiz has over two decades of…

ITC Hotels ‘Double the Joy’ by introducing a memorable ‘100% Back’ offer

A ten-year strong ‘Responsible Luxury’ ethos underscores ITC Hotels brands and initiatives to present innovative and memorable customer experiences. In order to…

Delta 105: A Boot Camp like never before

Have you dreamt of climbing Mount Everest or go Mountaineering but you don’t know where to start? Look no further…Delta 105, a…

Master Chef Sylvester Rozario rings the bell at The Aananda Imperial

With great joy, The Aananda Imperial by Svenska Bilaspur Chhattisgarh,  has stepped into its 11th year of operation and has joined hands…

A soaring 18 storey Taj Skyline makes a debut in Ahmedabad Gujarat

Announcing the addition of the Taj Skyline, IHCL’s, (Indian Hotels Company) iconic brand, Taj, debuted its new hotel in Ahmedabad, Gujarat. Soaring over…

IHCL expands presence in East with 3 new Taj hotels

IHCL, Indian Hotels Company announced the signing of three Taj hotels – two in Kolkata, West Bengal and one in Patna, Bihar.  These new…

61 room new Lemon Tree Hotel Jhansi debuts in Jhansi

The opening of the 61 key hotel–Lemon Tree Hotel Jhansi, was announced by Lemon Tree Hotels Limited, through its management subsidiary Carnation Hotels…

The all new Sarovar Portico, Sasan Gir helps Sarovar Hotels expand footprint in Gujarat

Sarovar Portico, Sasan Gir is the latest addition to Sarovar Hotels and Resorts’ portfolio in the state of Gujarat.

Anika Gupta : Speak from the heart and act from the gut

Always ready to take the road less travelled, Anika Gupta, Director Development – Eurasia, Wyndham Hotels & Resorts tucks in 17 years…