Airport operators are likely to suffer losses worth Rs 5,000-5,500 crore and airport retailers will see a hit of Rs 1,700-1,800 crore, he noted.
That would reverse the growth trend of around 11 per cent per annum, which the industry has logged over the past ten years, making it one of the most adversely-affected sectors of the economy, the agency said.
Projecting higher losses for the industry, if travel restrictions last longer in hubs such as Mumbai, Delhi, Chennai and Kolkata, Crisil said it expects the aviation sector to take at least 6-8 quarters to reach pre-pandemic levels.
These are preliminary estimates, and aggregate losses could increase if the lockdown
is extended beyond the first quarter, Padmanabhan said, adding that as and when operations resume, overall operational capacity will hover at 50-60 per cent for the rest of the fiscal.
Consequently, mergers and acquisitions of airlines, and relook at expansion plans of private and upcoming greenfield airports would be possibilities, he noted.
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