Wadia group promoters Nusli Wadia and his son Jeh said that there have been no signs of help from government and banks to bailout the aviation sector.

The Wadia group owns low-cost airline Go Air, which has sent 90 per cent of its employees on leave without pay till May 4.

The group, which also owns several other companies like FMCG major Britannia and Bombay Dyeing--one of the largest producer of textiles--stated this in a letter to the airlines’ employees on May 3.

“We have been in touch with the government requesting for both structural changes and financial assistance but nothing has been forthcoming. Likewise we have been requesting the banks but they haven’t also reached a conclusion on how to support the airlines,” the Wadias noted in the letter.

The airline hasn’t yet paid salaries of March except to the lower ranks, which had created dissatisfaction among employees.

The Wadias in the letter also drew comparisons with other western economies that have provided financial assistance to their airlines for payment of salaries and restructuring their operations. “These airlines have got substantial help and financial assistance from their government and banking system,” they mentioned.

India’s airlines and airports, the most impacted by the outbreak of virus, has been seeking help from the government to mitigate the financial impact of the epidemic.

The aviation industry needs an urgent bailout from the government, industry body FICCI’s Aviation Committee Chairman Anand Stanley who is also head of aerospace major Airbus wrote to the government.

“The government may immediately provide direct cash support to Indian carriers, so that airlines can meet their fixed costs, at least for the period where loss of revenues and liquidity is directly attributable to the government’s directive to cease operation,” Stanley said, referring to India suspending flights till 14 April amid a three-week nationwide lockdown to arrest the spread of virus. To gauge an impact of the crisis, paassenger numbers for Indian airlines fell by 33 percent in March, which had just six days of closure, as compared to the corresponding period last year.

Go Air has mostly been profitable due to its slow growth approach and healthy revenue from sale and leaseback of aircraft. The airline plans to resume operations with 8-10 aircraft upon relaxation of lockdown. Pre-lockdown it operated over 300 flights daily with 45 aircraft and could start with only around 50 flights to begin with. “According to the airlines’ business plan, it would be March 2021 when it will resume full operations again. Hence it doesn’t need as much crew,” a person aware of the development said. Network expansion will be gradual and initial stage staff requirements for operations would be less.