More than 2 million employees are working in Indian airlines who are at risk of losing their jobs. The lockdown in the country has been extending until May 3, 2020. So the commercial operations for airlines will only be able to restart from May 4, which is a long time. Considering that the airlines have not been operating for more than a month when the lockdown is lifted, there will be very fewer cash reserves left with the airlines. To resume operations comfortably, every airline will be looking to cut down on its costs. One of the ways to do it is by firing employees.
Indian Airlines Are Facing Existential Crisis
Indian aviation wasn’t in a perfect place even before the lockdown was implemented. Now it will be worse than ever, with demand for air travel dropping once the lockdown is lifted. According to a report from the International Air Transport Association (IATA), Indian aviation is going to lose $8.8 billion in passenger revenues in the coming year. The passenger demand percentage is going to drop over 36% as well. These are not good signs for the employees working in the airlines.
Government Need To Provide a Bailout Package For The Aviation Industry
The aviation industry desperately needs a bailout package from the Indian government. But the government might not be able to do that. At the moment, all of the government’s resources are pooled into providing basic amenities to poor people who can’t afford to purchase food and medicines. There are limited resources only, and the only way government might be able to help the airlines is by providing temporary waivers on interest on credits. All of this has put around 2 million employees at a standstill in Indian airlines.