Challenges Facing India's Airlines Amid Global Uncertainty
India’s airlines are really struggling right now. They’re under serious pressure from skyrocketing aviation turbine fuel costs, the whole geopolitical mess in West Asia, and the rupee weakening. This has forced the government to step in, and carriers are having to completely rethink their expansion plans.
Captain Simran Singh Tiwana, the CEO of Star Air, spoke to News18 about it. He admitted the current situation is tough. But he stressed it’s not the same nightmare the aviation crisis was during Covid.
“During the pandemic, there were no takers,” Tiwana said. “That’s not the case today. Demand still exists. It’s just gotten way more expensive to run things.”
This comment hits home because airlines are grappling with fuel prices that are climbing thanks to global tensions and all those supply chain snags affecting deliveries and maintenance.
When asked about the Centre’s Rs 5,000 crore Emergency Credit Line Guarantee Scheme—that support for the airlines—Tiwana said it showed the government moved fast. They tried to cushion the industry against these new pressures.
“The Government of India moved very swiftly to a crisis which is still brewing,” he noted. He added that few other countries have taken similar steps regarding aviation stress linked to geopolitical developments.
But credit relief alone? Not enough.
“These schemes help,” Tiwana admitted. “But they are delayed repayment plans. Businesses still need strong fundamentals.”
He went on to suggest that if these fuel prices and global uncertainty keep going, more intervention might be necessary.
“For a market of India’s size,” he argued, “this may not be sufficient if the crisis continues.”
Beyond the fuel, there’s the rupee. The depreciation is hitting hard too. It makes everything tied to the dollar—aircraft buying, maintenance, other payments—significantly more expensive.
“There is a steep impact,” Tiwana said. “Some costs have to be paid in US dollars, and we can’t just ignore that.”
The Star Air chief mentioned that the airline has already done some damage control. They deferred certain capital expenditure decisions and worked with vendors to manage costs amidst all this uncertainty.
When the Prime Minister appealed for restraint on overseas spending to protect foreign exchange reserves, Tiwana pointed out the pressure felt by airlines running international routes.
“It will definitely impact airlines operating scheduled international services,” he said. But he made it clear that Star Air, which focuses mostly domestic routes, is shielded from those specific risks.
Despite this short-term turbulence, Tiwana stayed optimistic about the future. He pointed to India’s regional aviation ambitions. Especially with the government pushing for better connectivity and airport infrastructure.
“Sixty-five per cent of India’s population lives in Tier-2 and Tier-3 cities,” he pointed out. He argued that linking these regions would be key to India’s long-term economic goals.
Star Air is opting to scale back routes rather than just shutting them down.
“We continue serving markets, even at lower frequency, instead of disconnecting them,” he said.
For the moment, the priority for everyone in the industry is just saving cash. Navigating this fuel volatility and global mess is the main focus.
“The short-term view is conservative,” Tiwana concluded. “But the long-term perspective for Indian aviation is massive.”
He looked ahead, pointing to the growing demand from those smaller cities, the new airport setups, and the expanding aviation ecosystem. He remains very bullish on India’s long-term aviation story.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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