Coronavirus may cause Airlines to go bankrupt by May 2020: Report urges quick action

As the Coronavirus has spread majorly across the globe creating a pandemic, most of the airlines in the world will be bankrupt by the end of May 2020, stated a report by the CAPA - Centre for Aviation. According to the report, several airlines are probably already running into a technical bankruptcy or are at least substantially in breach of debt covenants. 

The report stated, "Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full. 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."

Further, giving out a solution, the report stated that a coordinated government and an industry action is immediately needed to avoid a catastrophe. The CAPA Centre for Aviation is a consultancy of the market intelligence for the aviation and travel industry. 

The Coronavirus crisis

As of date, the total number of positive cases in India has soared up to around 127, including 17 foreign nationals. The maximum cases of the virus have been reported in Maharashtra and Kerala. Apart from it, two deaths have been reported in Kalaburagi and West Delhi respectively. India has suspended all visas, barring for a few categories such as diplomatic and employment apart from keeping in abeyance the visa-free travel facility to OCI cardholders till April 15.

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Moreover, the Centre has “strongly advised” Indians to avoid all non-essential travel abroad. The government is also monitoring all suspected cases and has issued preventive advisories. Earlier on Saturday, the Central Government decided to treat the deadly virus as a "notified disaster".

Read: Aaditya Thackeray reviews preparations to deal with COVID in Mumbai suburbs

First detected in Wuhan in December 2019, COVID-19- the novel Coronavirus has affected nearly 148 countries in the world. Presently, there are over 168,019 confirmed cases of COVID-19 which has led to the death of 6,610 people. As there is no vaccine or specific antiviral medicine to treat COVID-19, countries have been grappling with all possible mechanisms to contain its scope. So far, China, South Korea, Italy, and Iran have witnessed the most number of confirmed cases of the Novel Coronavirus.

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(With ANI Inputs)