Daijiworld Media Network - New Delhi (MS)

New Delhi, Mar 16: Most of the airlines operating around the globe will turn insolvent by the end of May due to the coronovirus pandemic that has taken the whole world under its monstrous grip, according to CAPA, global aviation consultancy firm. The firm feels that there is an urgent need of coordinated action plan between the respective governments and airlines to avoid the catastrophe.

The airlines on their part have already cut down their operations drastically. Delta Airlines, one of the major operators in USA had decided to ground more than of its flights, which means a reduction of 40% of its operations.

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People from most of the European countries are barred from entering USA. Similarly other nations have also taken precautions not to allow citizens of other countries to enter their land to avoid the spread of coronavirus pandemic.

The agency says that the liquidity of the airline companies is being used up fast and the flight are operating at half their usual capacity. The cancellations are outnumbering the reservations as various governments across the globe are placing additional restrictions on travel day by day.

In India, IndiGo airlines, who are the largest operator, consisting of 260 planes in its fleet, said that there is a decrease of 15 to 20 percent in its booking in the past week. The airlines also stated that this will have a big impact on its earnings of the first quarter of this year.

The consultancy firm is of the opinion that only airlines that are well-supported by the governments of respective countries will have some chance of survival.