While AirAsia Might Exit India, Grounded Jet Airways Is Planning To Fly Again In 2021

It has been quite literally a mixed bag for the Indian aviation sector for the past few weeks. The industry is still struggling to recover from the huge financial losses inflicted by the COVID-19 pandemic. Though the airlines have started flying again, the industry does not expect a turnaround in their fortunes at least in the next two years.

AFP

Around the world, several big and small airlines bow out, unable to withstand the losses and there is a growing fear that many more will be added to the list.

Growing number of airlines shutting shop

So far Air Deccan, which in August announced that it is ceasing its operations until further notice and all employees are being put on sabbatical without pay, is the only Indian aviation company to succumb to the coronavirus crisis.

However last month, it was reported that Malaysian carrier AirAsia is reviewing its India operations run in partnership with Tata Sons, signaling a possible exit from the country.

BCCL

The India operations have been draining cash, adding to its financial troubles exacerbated by the Covid-related restrictions on global travel.

AirAsia planning to leave the Indian skies

AirAsia owns 49% in the India unit, which has been unprofitable from the beginning, while Tata Sons holds the remaining share of 51%. AirAsia¡¯s review of its India operations follows its Japanese arm filing for bankruptcy. Last month, it had ceased flying in Japan citing high challenging operating conditions.

While Air Asia is eyeing to exit the Indian skies, there is also some good news from the domestic industry.

BCCL

Two years after it was grounded, Jet Airways which was once India's biggest airline could fly soon.

A consortium, led by the Dubai-based entrepreneur Murari Lal Jalan and Kalrock Capital, on Monday announced a revival plan for the airline that aims to take to the skies in the summer of 2021.

Jet 2.0

It said Jet 2.0 will be launched as a full service carrier subject to regulatory approvals.

BCCL

¡°As per the resolution plan, Jet Airways intends to operate all of its historic domestic slots in India and restart international operations. If everything goes as per plan and the consortium receives the NCLT and regulatory approvals on time, Jet Airways would be back in the skies by the summer of 2021,¡± the statement said.

BCCL

It had evaluated the option of starting a new airline but some of the inherent strengths of Jet Airways like the optimal flight slots, brand value and reputation for best-in-class inflight service and safety, giving Jet 2.0 an edge over others, were too tempting to resist, the release added.