The Centre for Asia Pacific Aviation (CAPA) said that thecoronavirus pandemic may cause many airlines to become bankrupt by the end of Maythis year.
The statement of CAPA comes at a time when many of the airlines across India have decreased the number of flights due to various travel restrictions imposed by the government.
The statement said, "As the impact of the coronavirus and multiplegovernment travel reactions sweep through our world, many airlines haveprobably already been driven into technical bankruptcy, or are at leastsubstantially in breach of debt covenants."
According to CAPA, the only way in which airlines can be savedfrom a catastrophe is when coordinated government and industry action is taken.
It said, "Coordinated government and industry action is needednow if catastrophe is to be avoided."
CAPA further stated that the demand is drying up in ways thatare completely unprecedented. Normality is not yet on the horizon. Cashreserves are running down quickly as fleets are grounded and what flights thereare operate much less than half full, CAPA added.
The Centre on Tuesday prohibited travel of passengers from Afghanistan, Philippines, Malaysia to India till March 31, 2020, to prevent the spread of Coronavirus which has become a global threat.
