India’s leading air carrier Air India is expected to incur losses of Rs 30-35 crore per day following the suspension of its operation in the wake of the coronavirus pandemic.
After Prime Minister Narendra Modi called for a 21-day lockdown of the entire nation in an effort to contain the COVID-19 pandemic, all transport services remains suspended for civilians.
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As per reports, Air India’s total earnings per day are around Rs 60-65 crore and 90 per cent of this comes from passenger revenue.
According to a source, the air carrier’s salary bill stands at around Rs 250 crore per month while the aircraft lease rentals outgo is around USD 30 million per month
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“Though there will not be certain costs such as fuel, ground handling, airport fee during the suspension of operations, we still will have to make payments towards salaries and allowances, lease rentals, minimum maintenance, besides the interest payment, among others,” the source told.
The Ministry of Civil Aviation had recently stated that all domestic schedule commercial airlines should cease its operations from 11.59 pm on March 24, 2020.
“The operations of domestic schedule commercial airlines shall cease operations with effective from the mid night 23.59 IST hours on March 24, 2020.Airlines have to plan operations so as to land at their destination before 2359 hours on March 24, 2020. The restrictions shall not apply to solely cargo carrying flights,” it added.
To control the massive outbreak of coronavirus, the Indian government had earlier decided not to allow any scheduled international commercial passenger aircraft to land in the country for one week with effect from March 22.