India’s commercial aviation industry has always run on wafer-thin profit margins. Yet nearly six months into the global pandemic there has been no major airline casualty, despite getting zero financial help from the government.
Airlines have got by so far by taking a hatchet to unnecessary costs, as well as big salary cuts and job losses. Yet that will not be enough as India is still a long way from a recovery with still surging Covid-19 cases. Analysts expect market consolidation with one or two mergers likely in the coming months.
