After the country’s auto, FMCG and textile sectors, the aviation industry is witnessing an Economic slowdown. The situation has become such that most of the country’s airline companies are either burdened with debt or are running in deficit.
In the last 1 year, the Profits of the country’s leading airline company IndiGo have fallen by about 150 percent. However, in the first quarter of the financial year 2019-20, Indigo’s profit has definitely increased to a record Rs 1,203 crore. However, IndiGo, owned by Interglobe Aviation Limited, has a 50 per cent share in the Indian market. Talking about another airline expansion, the company has lost more than 800 crores in the financial year 2018-19. In the previous financial year, Vistara lost Rs 431 crore. More or less the same crisis is with SpiceJet.
Air India Lost 8400 crore
Air India incurred a huge loss of Rs 8,400 crore in the financial year 2018-19. The total income of Air India was Rs 26,400 crore in the financial year 2018-19. During this time the company had to incur an operating loss of Rs 4,600 crore. Air India suffered an operating loss of Rs 175–200 crore in the June quarter due to the closure of Pakistani airspace. Explain that there is a total debt of Rs 58,000 crore on Air India and airlines have to spend Rs 4,000 crore annually to repay it.
Jet Airways is temporarily closed
At one time, Jet Airways aircraft, which has been recognized as the largest airline in the country, has not flown since April 17. Actually, Jet Airways is in debt of about 12 thousand crores. Currently, Jet Airways is going through a bankruptcy process. At the same time, Naresh Goyal, the founder of Jet Airways, has resigned as chairman. Not only this, due to financial irregularities, they are also under legal scrutiny. Most of the employees of Jet Airways have become unemployed.