As India-China direct flights resume, who stands to gain?, Pg16.

Key Highlights:

• Direct flights between India and mainland China are set to resume by the end of October 2025, after a five-year suspension.
• IndiGo will initiate daily flights from Kolkata to Guangzhou starting October 26, 2025.
• Air India plans to launch flights from Delhi to Shanghai before the end of 2025.
• The resumption follows discussions between Indian and Chinese officials throughout 2024, including meetings at the G20 Summit and between aviation ministers.

Detailed Insights:

• Direct flights were initially suspended due to the Covid-19 pandemic and further delayed by strained relations following the Line of Actual Control (LAC) standoff in 2020.
• The resumption of flights is expected to increase competition among airlines, potentially leading to lower airfares and more travel options for passengers.
• In 2019, direct flights accounted for over 45% of passenger traffic between India and China, with Chinese airlines holding a larger market share.
• Airlines from Singapore, Hong Kong, Thailand, Malaysia, and Vietnam benefited from the suspension by serving as connecting hubs for India-China travel.
• The Hong Kong airport, while a leading connecting hub, operates under a different visa regime than mainland China due to its special autonomous status.
• In December 2019, there were 539 scheduled direct flights per month offering a seat capacity of over 1.25 lakh, with Indian carriers operating 168 of those flights.
• The privatized and well-capitalized Air India, along with IndiGo, are now positioned to compete more effectively in the international market.

Key Concepts Involved:

• Line of Actual Control (LAC): The de facto border between India and China.
• Bilateral Relations: Diplomatic, economic, and cultural relationships between two countries.
• Market Share: The percentage of a market controlled by a specific company or product.