The country’s leading airline Air India has had to make major changes in its operational plan due to rising fuel prices. The cost structure of the airline has been affected due to fluctuations in global crude oil prices and cost of jet fuel (ATF). For this reason, the company has decided to temporarily stop air services on some routes.
Reason for huge increase in fuel expenses
According to the aviation industry, a major part of the total expenses of any airline depends on jet fuel. Air India’s operating costs have increased significantly in recent months due to increase in crude oil prices in the international market. Experts say that rising fuel prices also affect ticket prices, but due to limited passenger demand on many routes, airlines are facing losses.
Which routes were affected?
According to sources, Air India has identified domestic and international routes where:
Number of passengers is less, operating cost is high and profit is continuously decreasing.
It has been decided to temporarily stop or reduce flights on some such routes.
impact on passengers
This decision will have a direct impact on passengers. Now direct flights will not be available between some cities, due to which passengers may have to resort to connecting flights. Travel agencies say that this can increase both travel time and expenses.
airline strategy
Air India’s focus now is to make its network more profitable. The company is planning to strengthen flights in areas where the number of passengers is high by removing routes with low demand. Apart from this, the airline is also working on new fuel-saving aircraft and route optimization.
Big challenge of aviation sector
Experts believe that this problem is not limited to Air India only. To airlines in India and around the world:
Rising fuel prices, currency fluctuations and operational costs.
Such challenges are being faced.