CAPA has come out with yet another alarm, saying that both industry and government need to sit down and together find solutions to problems, indeed, the grave crisis, confronting the airline industry. COVID 19 closure of the sector, and the slow calibrated re-opening, according to CAPA estimates, will need another two years before the sector can recover. In between, there is grave danger of collapse in the system.
In another development, speaking at an IDEAS exchange with Indian Express newspaper, Minister Hardeep Puri has accepted the gravity of the situation. In fact, he has pointed out that a few of the airlines were already in distress before the onset of COVID 19, and therefore needed to recoup, and fast. Towards this end, the Minister was committed to the opening up the sector earliest, and his team was working upon these measures.
But there is a bigger question: the operational viability of the sector, and stricter financial compliances that ensure that individual companies do not stretch themselves beyond their capital capabilities. Indian aviation needs an inclusive framework that works for all vertical within the sector, ensuring growth and sustainability for all.