Corona Causes Losses Of Rs 16 Billion In Airline Industry
September 9, 2020 | Investopaper
Private sector airlines operating domestic flights have lost more than Rs 16 billion due to the Covid-19 epidemic. The companies have suffered huge financial losses due to the suspension of domestic and international flights during the ban imposed by the government to control the Covid-19 epidemic.
To control the epidemic, the government has issued a lockdown in various parts of the country from Chaitra 11 to Shrawan 6 and curfew until Bhadra 24. That is why the tourism and aviation sector has been mostly affected for almost six months. Yograj Kandel Sharma, spokesperson of the Association of Airlines Operators, said that the airline had to bear a financial loss of more than Rs 16 billion in six months due to the impact of the epidemic. This includes the losses of Buddha Air, Yeti Airlines, Shree Airlines and various 10 companies operating helicopter businesses.
Private sector airlines are estimated to lose more than Rs 25 billion in 2020. Spokesperson Sharma said that Buddha Air alone has incurred a loss of around Rs 4 billion during the six months of the shutdown. Yeti Airlines has incurred a loss of Rs 3.60 billion. Shree Airlines has also suffered a financial loss of about Rs 3 billion.
Chief Executive of the Nepal Tourism Board, Dr. Dhananjay Regmi, said that the tourism and aviation sector had incurred a financial loss of more than Rs. 37 billion during the shutdown period. According to a recent study by the board, the country’s tourism and aviation sectors would lose Rs 41 billion during the shutdown. This is the details from Chaitra 11 to Shrawan, 2077.
The airport had an average of 300 domestic flights daily. Domestic flights include 34 helicopters and 46 airplanes. Nineteen airlines, including 10 helicopters, have been flying inland.
