K News Desktop- The effect of increasing tension in West Asia is now clearly visible on the aviation sector as well. Due to rise in crude oil prices and change in air routes, the operational costs of airlines are increasing rapidly. In view of this situation, Civil Aviation Minister Ram Mohan Naidu held a meeting with senior officials of airline companies on Friday and discussed the current situation.
At the meeting, representatives of airline companies warned that if the conflict in West Asia drags on, it could have a serious impact on airline operations. Airlines have also sought relief from the government on the issue of rising jet fuel prices, as jet fuel usually accounts for 15 to 25 percent of the total operating cost of airlines.
Actually, the rise in crude oil prices is having a direct impact on jet fuel. Jet fuel prices in Singapore have risen by 72 percent to a record $225.44 per barrel amid growing concerns about future supply. Due to this, there is a possibility of huge increase in the costs of airline companies.
Change in routes has also become a big challenge for the airlines. Due to tensions in many areas of West Asia, airlines are having to adopt longer and alternative routes, due to which fuel expenses are increasing and flight times are also increasing. For example, Air India has to take longer routes for flights to Europe and North America, due to which its costs have already increased.
Indigo has also been affected. The company had leased six wide-body aircraft with the aim of starting flights to Europe, but aircraft owner Norse Atlantic is not able to allow these aircraft to fly in West Asia airspace due to the rules of European aviation regulator EASA.
Another major challenge facing Indian airlines is that West Asia is now the only major transit route left for flights between Europe and Asia. Indian airlines have not been allowed to use Pakistan’s airspace since Operation Sindoor last year, further limiting options.
Apart from this, insurance companies have also started increasing the premium of war risk insurance. On routes like Delhi-Dubai, additional expenses have increased by about Rs 30 to 40 lakh for narrow-body aircraft and Rs 90 lakh to Rs 1 crore for wide-body aircraft.
Airlines have also asked the government to reduce airport fees and route navigation charges, which are levied by the Airports Authority of India (AAI). Although a senior government official has refused to consider any financial relief package for the aviation sector at present, he has said that efforts are being made to overcome the regulatory challenges faced by Indian airlines flying in West Asia.
Meanwhile, limited flights are being operated to evacuate Indian citizens stranded in West Asia. According to government data, domestic airlines canceled 278 international flights on Friday, while only 96 flights to and from West Asia were scheduled.
Experts believe that if the tension in the Middle East continues for a long time and the price of Brent crude remains between 80 to 90 dollars per barrel, then its biggest impact will be on those Indian airlines which are more dependent on international flights and routes to West Asia.
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