New Delhi [India], Mar 17 : As coronavirus spreads across the globe, a report by CAPA--Centre for Aviation has claimed that by the end of May-2020 most airlines in the world will be bankrupt amid the current COVID-19 scare.
According to the report, many airlines have probably already been driven into technical bankruptcy or are at least substantially in breach of debt covenants and most airlines in the world will go bankrupt by the end of 2020. Coordinated government and industry action is needed - now - if catastrophe is to be avoided.
"Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full," said CAPA Centre for Aviation report.
"Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon," CAPA added.
The fear is that, as a collapsed airline system is reconstituted, similar national self-interest will prevail. That's important because the aviation industry is about much more than airline health. It is crucial to global communications and trade.
CAPA Centre for Aviation is a consultancy of the market intelligence for the aviation and travel industry.
In India, according to official data, there are an estimated 114 cases who have tested positive for COVID-19 with two deaths reported from the infection.
( With inputs from ANI )