ARC NEWS
Air India chief clarifies impact of Pakistan airspace closure
June 03, 2025
Air India chief executive Campbell Wilson has played down the likelihood that the ongoing ban on its aircraft entering Pakistani airspace will have a significant impact on the company. Asked during a media briefing at IATA's AGM about reports that the airline has nominated a cost of $600 million annually in response to queries from the Indian government, Wilson said the overall figure was more nuanced. "Obviously, that fluctuates as we make our own adjustments and mitigations, but it is significant, but as I say, we're maintaining our existing schedule essentially," Wilson adds. "So it's a frustration for everyone involved, but just one of those things that we all deal with in aviation, $600 million over which period should it last one year and we not mitigate it in any way." Wilson says that the restrictions are increasing flying times to Europe by around an hour and up to three hours to North America, with the airline taking measures to counteract some of that impact for passengers. "North America, we're maintaining most of the flights as nonstop, albeit in some cases with a payload restriction. In a couple of cases, we're doing an enroute refuelling stop, but it's a very short one, so the customer experience is not significantly affected," he adds. Pakistan closed its airspace to all aircraft operated by and for Indian airlines on 24 April, shortly before hostilities broke out between the two countries. India subsequently responded with its own ban on Pakistani carriers on 1 May. The closure has particularly impacted flights operating north from Delhi, many of which have been forced to reroute over the Arabian Sea. Asked later about the demand environment, Wilson acknowledges that the conflict did affect domestic demand in late April and early May "which has since recovered", while the period also saw some impacts from airport closures in India's north. "And then there's a little as I talk about, impact on flight times and the like, although not necessarily on frequencies, little bit on payload. So the demand environment still remains very buoyant. It's just there's been some challenges from the external factors over the past couple of months."


'We are totally being manipulated' by tariffs: IATA economist
June 03, 2025
Tariffs imposed or threatened by the US government are a form of emotional manipulation, in the view of IATA's chief economist Marie Owens Thomsen. Speaking on 2 June during a panel discussion at IATA's AGM event in Delhi, Owens Thomsen said "we are totally being manipulated" by ever-changing threats of tariffs. "We should try to avoid being manipulated emotionally," she argues, while acknowledging that such avoidance is difficult at best. "I think we are totally being manipulated… when we jack up tariffs to 150% and then bring them down to 30% maybe or 10%, and think that that's good." She adds: "It's sort of like how I feel about my personal weight. I go high up, and then I go down to something lower, but it's still higher than it was, and that I feel better is obviously mental." Henry Wilkinson, chief intelligence officer at risk-analysis firm Dragonfly, suggested during the panel discussion that the effects of tariffs might run deeper than emotional manipulation, and could serve to destabilise global alliances and extend armed conflicts in Europe and the Middle East. "The question of tariffs is really important," Wilkinson says. "What we're seeing is that this decoupling of nations – this reduction of these economic inter-dependencies – is really critical, and the reason for that is: one, because it removes incentive for peace; but two, it also blunts the effect of sanctions." Describing sanctions as "the primary peaceful [method] for deterring conflict and trying to bring it to a resolution", he asks: "When sanctions are off the table and economic independence is falling, what are the tools of statecraft?"


IndiGo to exercise options for 30 additional A350-900s
June 02, 2025
IndiGo has kicked off its hosting of the IATA Annual General Meeting in Delhi by signing a tentative agreement with Airbus to exercise 30 options for additional Airbus A350-900s. Chief executive Pieter Elbers signed the memorandum of understanding with Airbus executive vice president sales Benoît de Saint-Exupéry during a 1 June media briefing. "We've recently started widebody operations, we're extremely excited about the progress," Elbers says. "We can't wait for Airbus to deliver the A359s and we thought this was a wonderful opportunity to actually double our firm orders from 30 to 60." IndiGo placed its order for 30 A350-900s plus 70 options in April 2024, the first of which will deliver in 2026. The longtime Airbus narrowbody operator has also wet-leased Boeing 777-300ERs from Turkish Airlines and recently inducted its first of six 787-9s wet-leased from Norse Atlantic Airways. Once firmed, the additional A350s will take IndiGo's backlog to 1,400 aircraft, de Saint-Exupéry says. "Just a year ago we were here in Delhi signing the first widebody order with IndiGo and we are excited to be doubling down with your interest to exercise these additional A350s," he said to Elbers.


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