Sustainability of airlines in India with Covid-19: Challenges ahead and possible way-outs

Abstract

Coronavirus outbreak has been highly disruptive for aviation sector, threatening the survival and sustainability of airlines. Apart from massive losses attributed to suspended operations, industry foresee a grim recession ahead. Restrictive movements, weak tourism, curtailed income, compressed commercial activities and fear psychosis are expected to compress the passenger demand from 30 to 60%, endangering the commercial viability of airlines operation. Fragile to withstand the cyclic momentary shocks of oil price fluctuation, demand flux, declining currency, airlines in India warrants for robust structural changes in their operating strategies, business model, revenue and pricing strategies to survive the long-lasting consequences of Covid-19. Paper attempts to analyze impact of lockdown and covid crisis on airlines in India and possible challenges ahead. Study also suggests the possible way-out for mitigating the expected losses.