Budget carrier IndiGo's decision to retrench 10 per cent of its workforce owing to the impact of the pandemic is the "beginning" of a "painful" process and in the prevailing conditions, the possibility of one or more airlines going out of business cannot be ruled out, according to CAPA India.

Besides, third-party investors are unlikely to invest in any airline under the present conditions, and the companies have the only option to seek capital infusion from the promoters, it said. IndiGo, which is the largest carrier by domestic market share, on Monday said it plans to hand over pink slips to 10 per cent of its around 23,500-strong workforce amid lack of demand.