The aviation and hospitality industry needs the government's help to continue having a level playing field in the international market, said Aditya Ghosh, former President of InterGlobe Aviation and current Board Member of OYO Rooms.
“Airlines and sometimes even hotel chains out of India are competing at a world stage. At the world stage, if you have situation where American airlines, for instance, have got $25 billion as part of their care package either through direct cash or through lower interest rates and things like that, how does an airline out of India or how does a hotel chain out of India compete at that market if that market is distorted?" Ghosh asked.
"That ability to continue to compete in a level playing field in the post COVID world on an international basis is something that needs to be solved for,” he added.
The airline and travel industry has been the worst-hit due to COVID-19. CRISIL estimates that the revenue loss to the India aviation industry could be to the tune of $1-1.5 billion per month of the lockdown.
According to Ghosh, businesses which had a bloated cost structure will see a higher impact. He further added that it is important to create a cash runway for businesses.
“There is definitely a need for creating cash runway for the next 4-8 months depending on which type of hotel or airline you are running... there may be certain relief on the tax structure on fuel cost, or something like landing and navigation charges could be deferred,” he said.