The Indian aviation industry has been hit hard by the ongoing COVID-19 pandemic, with many airlines struggling to stay afloat amidst a sharp decline in passenger traffic. In the latest development, GoFirst, formerly known as GoAir, has suspended its operations for three days due to its grounded fleet and filed for voluntary insolvency. This move has sent shockwaves through the industry and raised concerns about the future of the airline.
However, there is some positive news as SpiceJet has announced plans to revive its fleet of 25 grounded aircraft. The airline will draw funds from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and its own cash accruals to finance the revival. SpiceJet has already mobilized approximately Rs. 400 crore towards this effort, which is expected to enhance its top-line.
This move by SpiceJet is significant for the Indian aviation industry as it is expected to provide a boost to the sector. The aviation industry has been struggling to recover from the pandemic, and the grounding of aircraft has only added to its woes. The revival of SpiceJet’s grounded fleet will not only increase the airline’s capacity but will also contribute to the overall growth of the industry.
However, there are still concerns about the financial health of the aviation industry as a whole. The pandemic has had a severe impact on the sector, and it may take several years for it to fully recover. The industry is in dire need of financial support and government intervention to weather this crisis.
In conclusion, the grounding of Go First’s fleet has raised concerns about the future of the airline and the industry as a whole. However, the efforts by SpiceJet to revive its grounded fleet are a welcome development that is expected to provide a boost to the sector. Nevertheless, the aviation industry still faces significant challenges, and it remains to be seen how it will navigate this crisis.