NEW DELHI: The ongoing Iran war and Pakistan’s continued airspace ban on Indian carriers have dealt a major blow to India’s aviation sector, with Air India emerging as one of the biggest casualties amid rising costs, disrupted routes and intensifying foreign competition.
As conflict-related restrictions continue across parts of the Middle East, several international airlines including Lufthansa, Cathay Pacific and KLM have rapidly expanded operations to capture growing demand in India’s international travel market.
According to aviation data, foreign airlines increased their share of India-origin international traffic to 58.4 per cent between March and May this year, up from 51.2 per cent during the same period last year.
Meanwhile, Air India scheduled 17.5 per cent fewer international flights compared to a year earlier, operating just 6,404 flights during the three-month period.
India-US routes
The impact has been particularly severe on India-US routes, where Air India’s scheduled flights plunged by 77.4 per cent due to longer rerouted journeys and operational disruptions caused by regional tensions.
Pakistan has barred Indian airlines from using its airspace, forcing Indian carriers to take significantly longer routes that increase fuel consumption and operating costs.
Outgoing Air India chief executive Campbell Wilson told staff earlier this month that rising fuel prices, airspace closures and extended flight paths had made many international operations financially unsustainable.
Damaged Air India’s broader transformation plans
Industry analysts say the crisis has damaged Air India’s broader transformation plans, including ambitions to strengthen direct connectivity with Europe and North America.
At the same time, foreign airlines have moved aggressively to fill the gap.
Swiss International Air Lines increased flights from India by 39 per cent, while Cathay Pacific boosted India-Hong Kong services by 19 per cent as passengers increasingly avoid conflict-hit Gulf transit hubs.
Analysts say the situation has allowed global carriers to strengthen their foothold in one of the world’s fastest-growing aviation markets while Indian airlines struggle with mounting operational and financial pressure.
