With five of India’s six airlines operating with weak balance sheets that are compounding their problems in the time of COVID-19, industry experts have called for immediate structural and regulatory changes that could reverse their fortunes. They were speaking at a webinar organised by leading aviation consulting firm CAPA India. “The main issue with Indian airlines is their low-yield and high-cost structure. We would look for a higher yield market [to make airlines sustain]. The next 4 to 6 months are crucial as to who [which airline] will be around,” said Jeffrey Goh, CEO, Star Alliance. He said despite the setback, India must invest in improving aviation related infrastructure. Stressing that Indian aviation had been suffering on account of profitless growth, Kapil Kaul, director and CEO, CAPA Advisory said, “Despite many positive developments since deregulation almost 30 years ago, India’s potential has not been realised. Indian aviation has been caught in a cycle of profitless growth, punctuated by regular crises every 5-7 years.” “The sector was already weak. COVID simply exposed just how vulnerable the industry is. [This] must be used as a turning point to [become] a more profitable, resilient industry,” he said.

(The Hindu)