Air India cuts global flights till July: Congress slams Centre for 'gross mismanagement'
Synopsis
Key Takeaways
The Congress party on Sunday, 3 May launched a sharp attack on the Centre after reports emerged that Air India is scaling back international flight operations through July, citing a steep surge in jet fuel prices. The opposition called the situation a case of "gross mismanagement" and accused the government of prioritising electoral gains over the country's long-term economic interests.
What Air India Has Done
Air India has already reduced some international flights for April and May, with further cuts reportedly planned for June and July. CEO Campbell Wilson cited a "massive rise in jet fuel prices", ongoing airspace restrictions, and longer flying routes as the key factors making several international operations financially unviable. Wilson reportedly described the situation as "extremely challenging", noting that these pressures have significantly dented profitability.
The airline has already responded by increasing airfares and introducing fuel surcharges. However, Wilson acknowledged there is limited room for further fare hikes, warning that higher ticket prices risk dampening passenger demand and reducing bookings.
Domestic vs International Impact
While domestic operations have also been affected, the blow has been comparatively less severe. Wilson pointed out that government measures capping the increase in domestic fuel prices at 25 per cent have offered some relief on home routes. International routes, by contrast, face higher and largely uncapped cost pressures, making them disproportionately vulnerable to the current fuel price environment.
What Congress Said
Taking to social media platform X, the Congress party cited media reports and said the development reflected poorly on the government's handling of the economy. "The amount of mismanagement of our country is so gross. Imagine India's second biggest carrier shutting down international flights for next few months," the party posted.
It added: "Govt doesn't care and it is damaging India's future prospects. Only thing they care is winning state elections." The party alleged that the Centre was more focused on electoral considerations than safeguarding the nation's aviation and economic prospects.
Broader Context and What's Next
Air India, now under the Tata Group following its privatisation, has been in the midst of a major fleet and network expansion. The current fuel-driven retrenchment marks a significant setback to that growth trajectory. This comes amid broader global aviation stress, with multiple carriers worldwide grappling with elevated fuel costs and geopolitical airspace disruptions. The airline's ability to sustain its international network will hinge on whether jet fuel prices stabilise in the coming months and whether the government extends any relief measures to international operations as well.