India’s private airports have sought urgent relief from the government for sustaining operations and save jobs as they struggle to remain afloat in the ongoing Covid-19 pandemic.
“Airports are not generating sufficient cash flows to sustain operations, and meet debt obligations. Poor cash flows and consequently downgraded credit ratings have made it impossible for airports to take further financing support from financial institutions,” the Association of Private Airport Operators(APAO) said in a statement here.
It said airports had to incur additional operating expenses as well as operational capex due to re-designing of infrastructure and SOPs for containment of Covid-19.
The APAO said aero revenues have dipped 75%-80% due to lower air traffic management and a steep decline in passenger traffic.
As per the rating agency ICRA, the airports in India are expected to witness a decline in operating income by 61% to Rs 8,400 crore while reporting an operating loss of around Rs 1,700 crore and a net loss of Rs 5,400 crore in FY2021.
The APAO said airports have been requesting the government to provide some relief measures to directly alleviate the financial burden for airports.
The APAO represents the Mumbai, Delhi, Kochi, Bengaluru, Hyderabad airports, the airports of the Adani Group and the upcoming airports at Navi Mumbai and Goa.
The APAO also listed out the support extended by foreign governments such as the US, Britain, Germany to the airport sector in their respective countries to tide over the Covid-19 crises.
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