IndiGo, Air India Seek Govt Support Amid Middle East Crisis
India’s largest airlines, IndiGo and Air India, are requesting government assistance as ongoing tensions in the Middle East disrupt flight routes. The Iran conflict, combined with an ongoing ban on Indian carriers in Pakistan’s airspace, is forcing longer international routes—IndiGo now flies to the UK via Africa, while Air India has added stops on some North American flights—raising operational costs.
Both airlines are lobbying New Delhi for financial relief, including cuts to aviation turbine fuel taxes, which account for 30–40% of expenses, and reduced charges at privately-owned airports. Air India is also pushing to lower local taxes on premium economy tickets from 18% to 5%, while IndiGo seeks relief on federal and state levies applied to fuel.
The crisis comes amid growing financial pressures: IndiGo held a 63.6% domestic market share in January, while Air India Group controlled 26.5%. Air India, now owned by the Tata Group and Singapore Airlines, estimates a $600 million annual loss due to the Pakistan airspace ban and reported a $433 million loss last year, underscoring the urgent need for government support.
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