Tag Archives: Bailout

Cash-flow crisis of Indian airlines

View of part of the ramp at Bangalore Airport at night.

As the airline industry grapples with the largest demand shock in history, India’s skies are closed to all passenger traffic. 650 aircraft are grounded, cash-flows have dried up and pay-cuts and layoffs are the new normal. It does not help that the corona crisis came at a time where the country was also dealing with a banking crisis. Add to …

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Any bailout of airlines must also force structural reforms

With the rapid spread of the coronavirus pandemic, airlines have experienced the largest demand shock in history. Overnight demand has evaporated and each passing day brings with it news of airlines grounding entire fleets. International markets are shut and for India’s airlines, contrary to the narrative that domestic demand will help mitigate the impact, the situation is actually worse. This …

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Air India loses money on all international flights, but two

Air India Boeing 777-237LR VT-ALF Jharkand at New Delhi IGI airport. Photo copyright Vedant Agarwal, all rights reserved. Used with permission.

National carrier Air India lost money on 57 of its 59 international routes in the last fiscal year which ended March 31, 2014. The airline lost a whopping Rs 4,273.35 crores (approximately $712 million at current exchange rates) operating these international flights. This according to an internal “Route Economics” provisional report for April 1, 2013 to March 31, 2014 which …

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Air India slashes fares as government refuses bailout plea

National airline, Air India, followed lead of its two private sector competitors Jet Airways and Kingfisher, and today, slashed its basic air fares in the domestic sectors ranging from 35 per cent to 82 per cent as per PTI. The fare cut was effective from 1500 hours today, an Air India spokesperson said. The maximum reduction in fares was 82 …

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Air India doubles its bailout please to USD813 million

According to a Centre for Asia Pacific Aviation (CAPA) report, Air India has almost doubled its bailout request from the Indian Government, in the form of an equity injection and a soft loan (30:70 split), to USD 813 million from USD 467 million requested just two months ago. The amount is roughly equivalent to the revised expected losses for the …

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UPA Ministers differ on bailout for aviation industry

According to a Press Trust of India (PTI) report, the downturn in the aviation sector yesterday brought the differences among UPA ministers into full play on issues like the bailout for the beleaguered industry. The Labour Ministry convened a tripartite meeting to discuss the sacking of 1,900 Jet Airways employees. “We will seek details of employment and inspect the work …

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