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.

CRISIL forecasts loss of Rs 25000 crore for Indian Aviation CRISIL forecasts loss of Rs 25,000 crore for Indian Aviation

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

Responsible dining experiences are back at ITC Maurya

The iconic, award-winning restaurants at ITC Maurya have reopened for their patrons post the announcement to open restaurants in Delhi. In the…

Crowne Plaza Chennai Adyar Park announces hybrid weddings solution

Crowne Plaza Chennai Adyar Park has announced the launch of its #Celebrationbeyondgeograhies national campaign, providing a Hybrid Weddings and Socials experience for…

Kunal Onkar appointed new General Manager of U Rivergate Karjat

Absolute Hotel Services India has announced the appointment of Kunal Onkar as General Manager of U Rivergate Karjat.

Far East Hospitality expands footprint with new Far East Village Hotel Yokohama which is open from 1 June 2021

Far East Village Hotel Yokohama officially opened its doors this month.

Anilkumar Chudasama appointed Chief Engineer at Sayaji Jamnagar

Anilkumar Chudasama has been appointed as Chief Engineer at Sayaji Jamnagar

Rosakue starts its latest addition with the 12-room Rosa Kuber Mandovi Bay, in idyllic North Goa

“We have recently started our newest addition – Rosa Kuber Mandovi Bay, North Goa for people who are looking for a home…

Debopriyo Sen appointed new National Head of Sales at Tamara Leisure Experiences

Tamara Leisure Experiences appointed Debopriyo Sen as their National Head of Sales for the group. Debopriyo Sen has over 15+ years of…

Ajay Bakaya: Travellers’ choice of hotels will revolve around hygiene, cleanliness, safety

#ReviveRebuild | Today’s Traveller initiative “Revive and Rebuild the Hospitality industry” invites Ajay Bakaya, Managing Director, Sarovar Hotels and Resorts to share…

Iconic Tel Aviv Pride Parade returns on June 25

Tel Aviv-Yafo Municipality is delighted to announce the return of its iconic Tel Aviv Pride Parade on Friday, June 25, representing the…

ITC Hotels launch 65-room Welcomhotel Tavleen Chail

 ‘Welcomhotel’, one of India’s fastest-growing hospitality brands from the ITC Hotels group has launched its second property in Himachal Pradesh —Welcomhotel Tavleen…