Impact of Corona Virus on the Aviation Sector, Air Deccan Its First Victim

New Delhi, April 4, 2020 Sunday

The lockdown caused by the Corona virus epidemic has begun to weaken companies. Domestic airline Air Deccan is unable to cope with the pressures raised by the Corona virus crisis and has announced to shut down its operations. At the same time he has sent all the employees on leave without pay. The government has set a 21-day 'ban' to deal with the Corona virus crisis. The aviation sector is badly affected by this nationwide ban.

Air Deccan has become the first airline company to withstand this pressure. "Due to current domestic and global issues, the DGCA has directed the closure of its flights by April 14," Arun Kumar Singh, CEO of Air Deccan, said in an e-mail sent to employees. The Air Deccan has no option but to discontinue its operation until further notice. '

"I have to inform you that all the permanent, temporary and contract personnel of Air Deccan are being sent on leave without immediate effect," he said. The Air Deccan has four 18 seat beachcraft aircraft. The airline operates regional routes in western India. The main focus of the airline is Gujarat. Singh said in an e-mail, "Next week management will meet with department heads to continue some important positions. This will ensure that the airline can resume operations with limited efforts when the time is right. '

"I personally assure you that when the Deccan resumes operating in favorable conditions, all existing employees will be offered a preliminary proposal to work on their current positions," he said. A 21-day lockdown is applicable in the country from March 25. Following this, all domestic and international flights are closed. However, cargo flights, offshore helicopter management, medical related flights are allowed during the ban. In addition, special flights can be managed with DGCA approval.

The industry body Ficci wrote a letter to Aviation Minister Hardeep Singh Puri and Finance Minister Nirmala Sitharaman last week saying that many airlines in the country are about to go bankrupt. They are running out of cash. Where other airlines have resorted to cost reductions. These include measures for pilots' salaries, wage cuts or sending employees on paid leave without pay.

Air Deccan is the first airline to be the victim of Corona virus transmission. The remaining airlines leaving Air India are taking bookings after April 14. But Air Deccan did not start booking. It is unclear when the airline will resume its operations. When it comes to other airlines, Indigo has cut the salaries of its senior employees by 25%.

Vistara has announced a compulsory leave of 30 days in March for its senior employees. SpiceJet says all its employees' salaries will be reduced by 10 to 30 percent. Air India has announced a 10 per cent cut in all employees' allowances except cabin crew. GoAir has reduced the wages of its employees. Removed pilots operating overseas and announced to send employees on leave without pay.