India to Restart International Flights After Two Years
International flights to resume from March 27, regulator says Bubble arrangements will end once international flights start
India will resume scheduled international flights after two years from March 27 and end air-bubble arrangements, the aviation regulator said in a statement on Twitter Tuesday.
The move may spell a further boost for Indian carriers, which are adding back capacity as more people take to the skies with Covid-19 infections receding and vaccination cover increasing. Falling infections have paved the way for relaxations in movement curbs and boosted domestic travel.
Both IndiGo, India’s top airline, and SpiceJet Ltd. posted surprise profits in the quarter through December, underscoring a travel recovery is underway. Vistara, Singapore Airlines’ Indian joint venture, is back to its pre-covid capacity and resuming in-flight services like tea and coffee on domestic trips of 90 minutes or more, and offering a wider choice of food in premium cabins, Chief Executive Officer Vinod Kannan said last month.
Airline shares jumped in early trading on Wednesday. IndiGo was trading 4.7% higher at 1,673.45 rupees as of 10:03 a.m. in Mumbai, while SpiceJet climbed 4.1% to 59.45 rupees.
Opening up of international travel will help Indian carriers resume their expansion plans. IndiGo is looking to increase international routes to 40% of its capacity in five years from 25% and start non-stop flights to cities like Moscow, Cairo, Tel Aviv, Nairobi, Bali, Beijing and Manila, Chief Executive Officer Ronojoy Dutta said last year. Vistara will look at starting direct flights to the U.S. as soon as the airline gets confirmation on the delivery of Boeing 787 aircraft, Kannan said.
Still, Indian carriers are headed for a combined loss of as much as 260 billion rupees ($3.4 billion) for the year ending March 2022 as virus waves obstructed air travel and jet fuel prices jumped, according to the credit-rating firm ICRA Ltd.
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