Indigo Temporarily Suspends Operations To 6 International Destinations. Here's Why

(MENAFN- Live Mint) India's largest airline, IndiGo, announced on Thursday that it has temporarily halted flights to six international destinations, including Hong Kong and Krabi, as part of a broader network optimisation strategy, PTI reported.

The budget carrier has decided to temporarily suspend services to Langkawi, Krabi, Ho Chi Minh, Hong Kong, and Shanghai starting July 1 and Siem Reap effective July 3 until September 30, IndiGo said in a statement.

The decision has been taken in view of a traditionally softer demand in the upcoming quarter and an incredibly challenging cost environment, it said.

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IndiGo will resume bookings for all impacted services starting October 1, subject to an improved environment, it said, adding that the airline stands prepared to reinstate these services earlier than scheduled, in appropriate lead time.

The carrier also stated that it has managed to retain majority of its international operations -- over 1,800 weekly international flights -- despite this realignment.

"These measured changes are designed to align capacity with current market conditions and demand trends, while ensuring the airline maintains reliability and network integrity across its global destinations," the statement said.

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The airline will continue to monitor the situation, given the elevated operating costs and continued airspace restrictions, it added.

Here's what the govt said on ₹10 K crore ATF support amid West Asia crisis

The Centre on Thursday announced a ₹10,000 crore Aviation Turbine Fuel (ATF) price stabilisation mechanism for Indian airlines to ensure stability in air services, and shield passengers from the impact of extraordinary volatility in the global fuel prices amid the continuing crisis in West Asia, ANI reported.

Addressing the inter-ministerial media briefing, Rohit Raj, Director in the Ministry of Civil Aviation, said the Union Cabinet had approved "a one-time budgetary support mechanism of rupees up to 10,000 crores to provide ATF price stabilisation support to scheduled Indian carriers."

Also Read | Centre makes jet fuel support optional for airlines

Raj said the decision has been taken in a“larger public interest to protect air connectivity, ensure stability in air services, and shield passengers from the impact of extraordinary volatility in the global fuel prices arising out of the ongoing crisis.”

Under the approved mechanism, the government will provide an interest-free advance to oil marketing companies (OMCs), allowing them to supply aviation fuel to participating Indian airlines at a pre-determined stable price. "Whenever international ATF prices rise above the benchmark level, that is the fixed price under this arrangement, the corpus will compensate OMCs for the difference," Raj explained.

(With inputs from agencies)

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