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India’s largest domestic airline supports the 3rd Covid-19 Wave

India’s largest domestic airline is building over $ 1 billion in war treasure chests in preparation for the third wave of Covid-19 infection, just as the nationwide brutal outbreak has begun to recede. It states.

Ronojoy Dutta, CEO of IndiGo Airlines’ parent company InterGlobe Aviation, told the Financial Times that he hopes his career’s business will return to pre-pandemic levels by the end of the year, but another. Coronavirus wave Further confusion can occur in November.

Low-cost carriers plan to raise $ 30 billion ($ 410 million) through qualified institutional investors, a stock-raising tool used in India, to prepare for the worst-case scenario. IndiGo also plans to raise approximately $ 600 million through bank credit and aircraft sales and leasebacks.

“Doctors say there is a third wave. There are no ifs and buts about it, and it will probably come around November, December,” Dutta said.

“The board says,’Look, the environment is unstable.’ .. .. What if I shut down for another 3 months? And is your income zero? “We are building insurance for such disaster scenarios,” he added.

Coronavirus cases have been steadily declining since peaking in mid-May, but India recorded more than 6,000 deaths worldwide this week. Delta variant First identified in the country.

However, about 100,000 cases are reported daily and are published by many countries. Travel restrictions For passengers from India.

Prime Minister Narendra Modi before the surge at the beginning of the year Disregarded the threat He claimed to be in the second wave and claimed that the country had gained control of the virus.

As the second wave receded, New Delhi adopted a more cautious message, warning the third wave and expanding the impetus for vaccination.

India’s aviation sector Be punished By regional blockade nationwide. IndiGo passenger capacity It dropped from 80% in February to 30% in mid-May.

InterGlobe, which has a market share of over 50%, reported losses for the fifth consecutive quarter this month.

But Dutta said the third wave is unlikely Do as much damage as the second one.. “as long as [India keeps] About 700,000 people are vaccinated daily. .. .. It will be a very flat wave, “he said.

He also added that IndiGo has added new routes to vacation hotspots such as the Maldives, and will benefit from taking a “vengeance vacation” after Indians have been restricted to their homes for several months. I’m expecting.

The pandemic “retreated India for at least a couple of years,” Dutta said. “But it will catch up … I have a lot of confidence in India’s coming-of-age story.”

His cautious optimism contrasts with the vibrancy of recently hit Indian stocks. Record high..

The World Bank has lowered India’s growth forecast this year from 10.1% to 8.3%, blaming the second wave of coronavirus.

Madan Sabnavis, Chief Economist at Care Ratings, said:

“Now we’re almost ready for a third wave, so we’re better prepared,” added Subnavis. “Playbooks are more or less set up.”

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India’s largest domestic airline supports the 3rd Covid-19 Wave

Source link India’s largest domestic airline supports the 3rd Covid-19 Wave

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