IndiGo, which is the largest carrier by domestic market share, on Monday said it plans to hand over pink slips to 10 per cent of its around 23,500-strong workforce amid lack of demand
File pic/AFP
Budget carrier IndiGo's decision to retrench 10 per cent of its workforce owing to the impact of the pandemic is the "beginning" of a "painful" process and in the prevailing conditions, the possibility of one or more airlines going out of business cannot be ruled out, according to CAPA India.
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Besides, third-party investors are unlikely to invest in any airline under the present conditions, and the companies have the only option to seek capital infusion from the promoters, it said. IndiGo, which is the largest carrier by domestic market share, on Monday said it plans to hand over pink slips to 10 per cent of its around 23,500-strong workforce amid lack of demand.
"The decision by @IndiGo6E to lay off 10 per cent of its staff is the beginning of a painful process for Indian aviation as things start to unravel from the impact of #COVID19India. It'll be impossible to survive this crisis without a strong balance sheet (for domestic airlines)," CAPA India said in a tweet on Tuesday.
1-1.3L cr
Losses projected for domestic airlines over years 2020-22
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