Indian airlines fleet contract by 15 to 20 aircraft less than 700 in current fiscal year through March 2022

indian airlines are renewed pressure to raise cash or face the risk of having to downsize consolidate or having their planes repossessed by lessors as a surge of Covid 19 virus infections rolls traveller passengers traffic fell by nearly 30% in April from a month before and has halved again so far in the may forcing the country, s biggest and most cashed up carrier,INDIGO,in act,Indigo,s Parent, interglobe aviation (INGL.NS) met on Friday to consider an equity raising just months after it abandoned plans to raise up to 40 million rupees ($543)million) in January in response to a speedy recovery in travel interglobe has decided to continue exploring all options to increase liquidity including by a way of share sale to investors, the company told the stock exchange with traffic plummeting according to avaition minister data IndiGo cash burns in expected to raise to $3.4million a day a level last seen in September from $2 million a day at the end of 2020,am analyst who tracks the company said this means Indigo which has more than a 50% share of a market may took to Raise $543 million to $679 million amounting to at least two quarters to cash burn said the analyst who was declined to be named as he was not authorized to speak publicly while Indigo is seen as a survivor, the situation is worse for smaller carriers particularly whose without large backers, some of which were struggling before the novel coronavirus hit,analyst said.india haven’t provided much government assistance or support to private airlines will need to turn to private sector, independent Aviation analyst brendan sobie said,, the cash all comes from inian carriers are expected to report total losses of$4 to $4.5 billion in the fiscal year that ended on the march 31 and will lose similar amount this year avaition consultancy CAPA india said a note on this week with more people losing loved ones and the outlook of the economy jobs and incomes coming down a recovery in domestic travel which had been expected by the end of 2021 may not come until a least the first quarter of 2022,estimate to make matters worse ,several countries including Britain and united states with which the state which india had been bilateral arrangements to operate charter flights for restricted arrivals because of high infections rate the charter offered a lucrative revenue stream for local carriers from Indian government shutdown regular international flights with the pandemic hit a recovery in international traffic to pre covid levels is expected only by 2024,CAPA says smaller carriers such as spicejet put Ltd privately owned Goair could come under the pressure of reduce capacity find partner of consolidate, analyst say particular as aircraft lessoner take a harder line spicejet said it passengers and cargo business engaged…….the airline in less talks with tenders of debt and private investors for further capitalism the airlines spokesman have adding that is also expectsthe compensation due to Boeing (BA.n)for the 737_max aircraft to bloster its finance…CAPA expects 250 to 300 planes to be grounded in the first half of the current fiscal year while lessors might not be a patient as last year in allowed delayed repayment now air travel is resuming in places such as the United States and China there is more demand for aircraft and they would rather have the asset back then let airlines use it for free and depreciate it said Sanjeev Kapoor, former chief commercial officer of indian airlines vistara This hopefully will be a temporary setback for all airlines we will have to see it,if all the players will be able to weather the storm said sobie.Reporting by aditi shah in New delhi and Jamie freed in Sydney .