India-China Direct Flights May Soon Take Off Again After Years of Pause | Latest Developments

New Delhi: Amid reports of ongoing talks between India and China regarding the resumption of direct air services, External Affairs Ministry spokesperson Randhir Jaiswal confirmed that the civil aviation ministers from both nations have initiated discussions on the matter. 

"Both sides of civil aviation ministers have discussed the matter. Technical discussions are also happening," Jaiswal said.

Earlier, Civil Aviation Secretary Vumlunmang Vualnam mentioned that the first round of discussions between India and China had concluded, though the talks remain in the preliminary stages. Speaking at an Indian Chamber of Commerce (ICC) conference on aviation and tourism, Vualnam explained that while no specific dates have been set for the resumption of flights, the discussions are ongoing. "Some issues remain unresolved, and further discussions are expected," he said.

Direct flights between India and China were suspended in the wake of the Covid-19 pandemic and following the border clashes in 2020. Before the suspension, airlines operated multiple direct flights weekly, connecting major cities like Beijing, Shanghai, Guangzhou, and Kunming with New Delhi, Mumbai, and Kolkata.

The push for resuming direct air services was further emphasized last month by Chinese consul general in Kolkata, Xu Wei, who confirmed that both nations are in continuous dialogue regarding the issue. This follows an earlier statement from the Ministry of External Affairs (MEA) after Indian diplomat Vikram Misri’s visit to China in January, which stated that the two countries had agreed "in principle" to resume direct flights.

The suspension of flights came in the aftermath of the Galwan Valley clash in June 2020, which severely impacted bilateral relations between India and China. The violent skirmish led to the deaths of 20 Indian soldiers and at least four Chinese personnel. In response to the border incident, India took several measures, including banning 59 Chinese mobile apps, a move that China described as discriminatory and considered challenging at the WTO.

In addition to international air service discussions, Vualnam also addressed concerns surrounding domestic airfares in India. He highlighted that fare levels in India remain significantly lower than those in other regions, due to the country's deregulated market. However, he acknowledged concerns over fare fluctuations, especially during peak travel seasons.

To address this, the Directorate General of Civil Aviation (DGCA) has set up a tariff monitoring unit. Vualnam pointed out that fare spikes during festivals remain a challenge, but stressed that the highest fare category—referred to as "top bucket" fares—only account for about 1% of all tickets sold. He called for airlines to self-regulate such fares to avoid undue scrutiny.

Vualnam also announced that the AirSewa portal and its mobile app would now give more prominence to airfares. Passengers can lodge complaints through the platform, and the ministry will monitor and act on cases involving excessively high or monopolistic pricing. 

While acknowledging that the deregulated market complicates fare control, Vualnam emphasized that coordination between the civil aviation ministry and DGCA is ongoing to address these concerns.

Citing data from the International Air Transport Association (IATA), SpiceJet’s Chief Customer Officer Kamal Hingorani affirmed that airfares in India are among the lowest in the Asia-Pacific region. He explained that airlines often incur losses on tickets purchased 30 days in advance, while bookings made closer to the departure date tend to be more profitable. 

Hingorani also highlighted that 16 airlines have ceased operations in India, with only five remaining, indicating the financial struggles within the sector. Achieving profitability in the aviation industry, he noted, will require overall market maturity.