Renewed optimism as India, China plan to restore direct air links

Direct passenger flights between India and China are set to resume after suspension due to the Covid-19 pandemic and geopolitical tensions. The breakthrough came after Indian foreign secretary Vikram Misri and Chinese vice foreign minister Sun Weidong met in Beijing recently, where both governments agreed in principle to restart direct air services.

Stakeholders in the tourism and aviation sectors are optimistic about the impact of this development.

The resumption of direct air links between China and India is expected to lift business travel and business events first

“Some airlines like IndiGo are waiting for more details from the government before restarting services. Overall, this is a positive step towards improving tourism and connections between the two nations,” said industry veteran Subhash Goyal, chairman – STIC Travel & Air Charter Group.

In 2019, there were 2,589 direct flights connecting major Indian cities including Mumbai, Delhi and Kolkata to five major Chinese cities, Beijing, Shanghai, Guangzhou, Kunming and Chengdu, according to OAG Aviation.

Mayur Patel, head of Asia, OAG Aviation, told TTG Asia that while the direct market between India and China was relatively small compared with other country pairs, it is a strategic contributor to student and business travel.

“Additionally, transfer traffic via Beijing and Shanghai provided crucial connectivity to North America. However, with limited trans-Pacific flights currently available, transfer connectivity will remain constrained once new flights resume. As a result, restoring direct flights would enhance convenience by eliminating the need for connections through connecting hubs such as Hong Kong, Singapore and Bangkok,” added Patel.

Goyal expects business travel and business events to rebound the quickest on the back of direct flight resumption, while leisure tourism, both inbound and outbound, will grow steadily as travel confidence improves.

“As major trade partners, India and China will see enhanced business connectivity, fostering stronger economic ties. Key industries such as IT, manufacturing, pharmaceuticals and textiles will experience increased movement of professionals attending meetings, exhibitions and corporate events,” projected Harjit Singh, founder and chief of guest experience, Travel Twist.

Even though Chinese carriers dominated connectivity between the two lands in the past, Indian carriers like IndiGo and Air India that have placed record aircraft orders would have an opportunity to up the ante.

Moving forward, Patel believes that both IndiGo and Air India can expand their footprint by exploring secondary cities with high student and business travel demand.

“This expansion can also strengthen India’s aviation industry by increasing market share on international routes, enhancing brand recognition, and boosting revenues from premium segments like corporate travel,” concluded Goyal.

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