Painting a gloomy picture, the International Air Transport Association (IATA) on Friday said the Indian aviation industry is estimated to suffer a collective loss of $1.5 billion in 2009, with Air India accounting for most of it.
Indian airlines together would suffer "a loss of $1.5 billion in 2009, mostly from Air India. The major markets of India and China will have substantial increase in losses," IATA Director General and CEO Giovanni Bisignani said.
He, however, did not elaborate on the Air India's losses. Asked what steps would he prescribe for the national carrier, he merely said "they have a great management team. So, they do not need our suggestions."
Replying to questions, he said: "We now expect losses from commercial airline operations worldwide in 2009 to each $11 billion," making it clear that the losses of the Indian industry would account for 11 per cent of the global losses.
He said though the "beginning of an economic upturn is now visible, particularly in Asia, to the benefit of travel and freight volumes, yields are much weaker than anticipated and oil prices higher."
Bisignani maintained that "the worst is over, but recovery will be a long story" and estimated that about $80 billion of losses were to be recovered by the global aviation industry which would take at least three to four years.
