The Indian aviation sector has always been a challenging industry to crack into. Companies in this sector have struggled to break even, and only one airline, IndiGo, has managed to achieve some level of stability and profitability. Meanwhile, other players have been suffering, and the industry has been struggling to attract investment.
Recently, there was a glimmer of hope when Tata-owned Air India ordered a massive number of 470 aircraft from Airbus and Boeing. This move was followed by IndiGo's order for around 500 planes, and the market became optimistic about the future of the industry. However, the hype was short-lived when a low-cost carrier, Go First, owned by the Wadia family, announced that the company would be filing for bankruptcy. The CEO stated that the airline had been losing 200 crore every month.
The aviation industry has also been hit hard by the COVID-19 pandemic. The economic effects of the pandemic have been felt around the world, and the Indian aviation industry has been no exception. Airlines have been forced to ground themselves, and the resulting loss of revenue has led to an increase in debt levels. The industry is now struggling to stay afloat, with many airlines facing bankruptcy or closure.