The Congress party criticized the government for Air India’s potential reduction in international flights until July due to soaring jet fuel prices. The party accused the Centre of neglecting the country’s long-term economic interests, labeling it as “gross mismanagement.” Referring to media reports, the opposition party highlighted the significant impact on India’s prospects with the second-largest airline curtailing international services for months.
The party expressed concern over the government’s priorities, suggesting a focus on electoral gains rather than safeguarding the nation’s future. Air India’s CEO, Campbell Wilson, attributed the cutbacks to a substantial increase in jet fuel prices, ongoing airspace restrictions, and extended flying routes, making several international operations financially unsustainable. Wilson emphasized the challenges faced by the airline due to these factors, leading to a significant impact on profitability.
While domestic operations have also been affected, the airline has managed to mitigate the impact to a certain extent. Wilson noted that government interventions to limit domestic fuel price hikes have provided some relief compared to the higher cost pressures on international routes. To address rising expenses, Air India has raised airfares and introduced fuel surcharges, although further price hikes could potentially reduce passenger demand and bookings.
