Airline News: Air India, IndiGo Cut Flights as European Airlines Grow in India
Airline News
Indian airlines are facing a tough winter. Air India and IndiGo are reducing their international flights, while European airlines such as Lufthansa and Air France-KLM are increasing their presence in the Indian market.
Indian carriers are under pressure from several problems at the same time:
- Weak rupee: The rupee has fallen about 7 per cent against the US dollar over the past year. This makes it more costly for airlines to pay for aircraft leases, spare parts and fuel, which are mostly paid for in dollars.
- Rising oil prices: Oil prices have nearly doubled since February, which sharply raises the cost of running flights.
- Airspace closures: Closed airspace has forced flights to Europe and North America to take longer routes. Some flights also need technical stops, which adds time and cost.
Because of these pressures, both airlines are cutting back on long-distance flying.
IndiGo is returning its damp-leased Dreamliner aircraft by the end of this month. Air India is scaling down its international network. This winter, it is cancelling flights to Vienna and Copenhagen. It is also reducing services to Birmingham and London Gatwick. Its San Francisco service will be cut to just three flights a week. Not long ago, the airline flew that route ten times a week from Delhi and also had flights from Mumbai and Bengaluru.
While Indian airlines pull back, European airlines are doing well. Both Lufthansa and the Air France-KLM group reported strong results in the last quarter, and both named India as a bright spot for their profits.
Lufthansa had a strong April to June quarter. Its ticket yields, which means the income earned per passenger, were 13 per cent higher than the year before on Asian routes. The airline said India was a major reason for this jump. As a result, Lufthansa plans to add more flights to India next summer.
Travellers may find fewer direct flights on some routes from Indian carriers, especially to the US and parts of Europe. At the same time, they may get more choices on European airlines, which are likely to add flights and connections through their hubs in Europe.
Ajeet Yadav is an aviation enthusiast covering airline news, airports, aircraft, and industry developments through well-researched and reliable reporting.
