Chinese airlines, hailed for impressive growth until recently, posted a loss of $200 million in the first quarter of the current financial year, sources in the aviation business said.

They added that the airline has reduced 10 per cent of its work force.Philippines Airlines first suspended payment of $2.1 billion to the financiers, then planned to sell off 54 aircraft and ultimately closed down recently, they said.

The sources said the recessionary "virus" has affected the Indian aviation sector also.

Air India is reeling under Rs 1,000-crore accumulated losses and yet there are no signs of recovery, sources said.

Indian Airlines, they said, has also barely managed to keep its head above water. "But, the days ahead appear to be anything but rosy," they added.The giants of yesterday have been reduced to skeletons and are resorting to mass-scaleretrenchment and cost-cutting, according to sources in the aviation business.

The sources said the main cause of the ailment affecting the aviation business is the fall in traffic consequent to the global recessionary trend.