InvestorQ : Why is it that airlines are continuing to sell tickets to potential customers even after the government has effectively banned the same?
shrinidhi Rajan made post

Why is it that airlines are continuing to sell tickets to potential customers even after the government has effectively banned the same?

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Riya Dwivedi answered.
1 year ago
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Some of the major airlines that control close to 4/5 of the Indian aviation market are selling airline tickets for as early as third week of May. That is despite the government saying no decision has been made on allowing flights after the end of the nationwide lockdown on May 3. That should be logically interpreted as no which means airlines should sell tickets without the go ahead. For example, Indigo is selling tickets from June 1, as is Vistara. Spice Jet and Go Air are selling tickets from May 16 itself. Only Air India appears to be refraining from selling tickets online. Airlines around the world are using ticket sales to generate cash flow as Coronavirus pandemic has virtually brought travel to a standstill. Government cannot really complain as airline companies have no other means of generating cash flows in this period. It is already estimated that Indian airline companies could lose $3.6 billion in the three months through June if planes are grounded for the period.

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