Is Air India’s global turbulence opening doors for foreign operators in India

Air India’s struggles with operational disruptions, flight cuts, and rising costs have created an opening for foreign airlines in India’s international aviation market. According to OAG, Air India operated 6,404 international flights between March and May 2025, a 17.5% decline compared to the same period last year, with further reductions announced for June-August. The airline faces challenges from geopolitical tensions, airspace restrictions—particularly Pakistan’s ban on Indian carriers since April 2025—and higher fuel costs due to rerouted flights in West Asia. Meanwhile, foreign carriers are expanding rapidly. SWISS launched its first route to South India, a five-weekly flight from Zurich to Bengaluru starting in the 2026-27 winter schedule, targeting business and tech travelers. The airline now serves Delhi, Mumbai, and Bengaluru, while Air India reduces capacity on European and North American routes. SWISS CEO Jens Fehlinger highlighted Bengaluru’s role as India’s Silicon Valley, emphasizing demand from corporate and premium travelers. Flyadeal, Saudi Arabia’s low-cost airline, will begin daily Riyadh-Hyderabad flights from July 1, 2025, capitalizing on India’s expatriate and religious travel markets. The airline’s entry marks a significant shift in Gulf competition within India. OAG data shows foreign airlines now hold 58.4% of India-origin international flights, up from 51.2% a year earlier, as demand grows and Air India’s capacity shrinks. KLM and Cathay Pacific are also increasing services, sensing an opportunity in India’s expanding aviation market. The trend reflects a broader shift, where foreign carriers are filling gaps left by Air India’s operational constraints, particularly in routes to Europe, North America, and Asia. The changes underscore how geopolitical and economic pressures are reshaping India’s international air travel landscape.