National carrier Air India has decided to stop flights to five international destinations in Europe due to a drop in passenger carriage resulting in loss of revenue. This decision came at a time when the pandemic is drastically hitting the aviation sector.
Flights of Air India to Madrid, Milan, Copenhagen, Vienna and Stockholm have been stopped immediately. It wasn›t financially viable for Air India to operate on these routes.
As per the sources in Air India, “In view of the Covid-19 situation, it has been approved by competent authority to close down certain stations as well as international booking stations. We will immediately initiate action about the closure in consultation with local lawyers and advise the timelines, by which the station will be closed.”
According to aviation experts, in 2020, global passenger numbers were expected to decline by 55% compared to 2019.
This was a revised forecast from the one in April where the International Air Transport Association (IATA) had predicted that the global passenger numbers could decline by 46% this year.
Earlier, Indian government›s announcement that it will sell its entire stake in Air India was being seen as a much more exciting proposition for potential buyers but the dates for the Expression of Interest (EOI) got postponed time and again due to the pandemic. At present, the total debt of the airline is estimated at around Rs 60,000 crore.
Last month Airports Authority of India (AAI) had put Air India on cash and carry mode from Ahmedabad, Bhubaneswar, Chennai and Kolkata airports.
While Covid has dealt a body blow to all airlines globally, those with weak balance sheets are finding it hardest to survive. Airlines are downsizing and cutting costs through all possible means. However, India has begun lifting restrictions on the categories of people who can travel to and from the bubble countries. Now Indians can travel to these special arrangement countries on any type of visa.
