MGN 573 CAPSTONE PROJECT- I

Title: Effect of Covid-19 on Indian Aviation Industry

SUBMITTED BY

SYED IJAZ AHAMMAD (12001338)

DIPTIMAY MOHANTA (12001888)
SUBMITTED TO
DR. AJAY BAMBA
Abstract

 The purpose of this paper is to analyze the effects of uncertainty shocks on airline
employment in the light of the current global pandemic. The airline industry has faced
many threats throughout history, but none quite as rapid and severe as the one posed by
the spread of COVID-19.
 The hardest hit employees are ones related to passenger handling and flight
operations, while management employees fair slightly better during these uncertain
periods. Further, recovery following uncertainty shocks is estimated to take between
4 and 6 years.
 The corona virus pandemic is expected to impact more than 29 lakh jobs in the
Indian aviation and dependent industries.
Introduction

 The civil aviation industry in India has emerged as one of the fastest growing industries in the
country during the last three years. India has become the third largest domestic aviation market in
the world and is expected to overtake UK to become the third largest air passenger market by 2024.

 The COVID-19 pandemic has severely affected the airline industry due to restrictions on travel and
cancellation of flights in order to mitigate the effect of coronavirus. The aviation industry as well as
airports are facing a huge slowdown as a result of lack of air traffic and loss of revenues.
 The various steps taken by airlines in order to mitigate the losses include reduction of capacity, parking or
retiring aircrafts that have become old, reducing compensation paid to executives and taking measures
regarding voluntary leave or early retirement programs for employees, reduction in new employee hiring,
minimizing non essential spending (such as on employee travel, events, consultants, marketing) , closing
down airport lounges, pausing real estate projects, limiting food and beverage served onboard, stalling the
delivery of aircrafts, minimizing non-aircraft capital outflow, applying for both secured and unsecured
 loans for cash flow requirements, selling shares, selling or loaning aircrafts, engines as well as other assets
and stopping repurchase of shares and dividend payments. In this aspect, during the COVID-19 process,
rules have been established to protect public health within the scope of air transport activities, procedures
to be applied for passenger safety and flight crew safety have been determined and instructions have been
prepared.
Airline Companies where we performed the research

Air India

SpiceJet

Go First

AirAsia India

Vistara

Alliance Air
Research Gap:

 As we can see aviation sector is one of major sector that has been affected due to covid -19 but there are
only few papers and research has been made on it.

 major components based on which the research made is 1.Social – economic factors.

 History evidences.

 Global aviation sectors.

 So, there is a huge research gap in aviation sector and lot of components has been unexplored by
researchers such as Indian aviation sector, effect on occupancy and employment of Indian aviation industry.
Objective of study:

 To study the effect of covid on profit and loss (economy)of Indian

aviation companies.

 To study the Occupancy in aviation industry post covid.

 To study the Employment (ground regular staff) in aviation industry post

covid.
Effect of covid on profit and loss (economy)of Indian aviation
companies.

Financial summary of all scheduled Indian carriers- 2018-19

AIRLINE OPERATING OPERATING OPERATING
REVENU EXPENSES RESULT
INDIGO 284967.7 289872.0 -4904.3
Spice jet 91132.5 93793.6 -2661.1
VISTARA 29943.8 38948.5 -9004.7
AIR INDIA 255,088.3 301940.9 -46852.6
AIR ASIA INDIA 25116.4 32146.8 -7030.4
GO-First 64757.6 64030.7 726.9
True jet 2681.9 2857.6 -175.6
Occupancy in aviation industry post covid.

AIRLINES BEFORE COVID AFTER COVID

(JAN-DEC 2019) ( JAN-DEC 2020) (JAN-OCT
2021)

INDIGO 1,99,87,694 4,807,415 6,082,495

Spice jet 93,89,967 65,93,549 6,082,495

VISTARA 24,82,132 4,460,202 6,082,495

AIR INDIA 38,98,110 6,082,495 6,082,495

AIR ASIA INDIA 43,87,132 3,616,377 6,082,495

GO-First 35,47,194 5,034,546 5,034,546

True jet 3,76,734 255,021 255,021

Employment loss in the travel and tourism industry due to the coronavirus
(COVID-19) pandemic worldwide in 2020, by region
Research methodology:

 Research methodology:
 We have used secondary data to identify, process, and analyze information about a topic.

 Secondary data collected from profit and loss account and balance sheet from the Indian
aviation companies.

 Data collection from Indian aviation websites.

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