Reuters shines a light on how Indian airlines risk consolidation, plane repossessions - Reuters News Agency
Business & Finance

Reuters shines a light on how Indian airlines risk consolidation, plane repossessions

Reuters shone a light on India’s airline industry and how it is under renewed pressure to raise cash or face the risk of having to downsize, consolidate or have planes repossessed by lessors as a surge of COVID-19 infections roils travel. Passenger traffic fell by nearly 30% in April from a month before and has halved again so far in May, forcing even the country’s biggest and most cashed-up carrier, IndiGo, to act. IndiGo, which has more than a 50% share of the market, may look to raise $543 million to $679 million amounting to at least two-quarters of cash burn, said an analyst who tracks the company. While IndiGo is seen as a survivor, the situation is worse for smaller carriers, particularly those without large backers, some of which were struggling before the novel coronavirus hit, analysts say. 

Article Tags
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Aerospace & DefenceEquities
Regions: Asia
Countries: India
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
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