Capa India city New Delhi India reports Waves Capa India city New Delhi India

Covid-19: Capa India says second wave could lead to collapse of aviation sector

NEW DELHI : The ongoing second wave of coronavirus infections, which has brought the country's healthcare system to its knees, could precipitate a collapse of the domestic aviation sector, aviation consultancy firm Capa India said in a report on Monday.This will also accelerate consolidation in the industry resulting in two to three airlines operating in the domestic sector, down from six major airlines and three regional carriers that currently operate in the space, it added."Most Indian airlines were already very vulnerable prior to covid, with weak balance sheets and poor liquidity.

Covid inflicted massive losses and an increasing debt burden on carriers that were structurally ill-equipped to absorb this impact," said the report titled.

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