Air India, which is co-owned by Tata Group and Singapore Airlines, is set to significantly reduce its international flight operations by nearly 140 flights per week, amounting to a 27% cut in total international flights.
This decision comes in response to operational challenges stemming from airspace restrictions due to the ongoing conflict in Iran and soaring jet fuel prices, which are reportedly 40% higher in India compared to global averages due to local taxes.
The airline's adjustments will affect routes to North America, Europe, Australia, and Asia, as it aims to enhance network stability and minimize last-minute disruptions for passengers.
The broader Indian aviation sector is under considerable strain, with experts noting that Indian carriers are facing severe operational difficulties due to airspace closures over several Middle Eastern countries, including Iran, Iraq, and Israel. Sanjay Lazar, an aviation expert, highlighted that increased flying hours and additional crew costs are making operations unsustainable.
Furthermore, the Indian rupee has recently hit an all-time low of 95.95 per dollar, exacerbating the financial pressures on airlines, which may need to raise ticket prices by approximately 15% to cope with rising costs.
The Federation of Indian Airlines has warned that many carriers are on the brink of halting operations due to these challenges, and Prime Minister Narendra Modi has urged citizens to limit international travel to alleviate the country's growing import expenses