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Iran-Israel Conflict Force Longer Routes for Indian Airlines

Iran-Israel Conflict Force Longer Routes for Indian Airlines

Skift3 days ago

The armed conflict between Israel and Iran is the latest in developments that have been disrupting travel in the region. For Indian airlines, it means navigating a maze of airspace closures as Pakistan's airspace still remains restricted.
Indian carriers, which were already dealing with Pakistan's airspace closure, are now likely to face even longer flying journeys due to airspace restrictions caused by the Iran-Israel conflict.
In a travel advisory posted on X, Air India said, 'Due to the emerging situation in Iran and parts of the Middle East, the subsequent closure of airspace, and in view of the safety of our passengers, some of our flights are operating on alternative extended routes.'
Budget airline IndiGo issued a similar advisory, stating that the airspace closure over Iran and nearby regions could lead to longer travel times or cancellations.
The Indian embassy in Iran issued advisories for Indian nationals in the country, sharing helpline numbers and links to provide updates to ensure their safety.
Tour operator Cox & Kings on Monday said that travel disruptions are leading to a surge in rescheduling and assistance requests, 'particularly from travelers affected by unscheduled layovers and extended delays.' It added that the broader disruptions caused by the Iran airspace closure has placed a temporary pressure on international routes.
SpiceJet also said Monday that the airline was witnessing a massive air traffic control congestion at Dubai due to airspace closure over Iran and the unavailability of Muscat airspace. 'All departures/arrivals and their consequential flights might get affected,' it added.
Rising Tensions: The Middle East region has been tense for over a year due to the Israel-Palestine conflict that quickly spread to other nearby countries. Last April also witnessed a similar Israel-Iran conflict when airlines flying over Iran had to reroute to different airports or return to original departure locations due to Israel's attack on Iran.
The current disruption follows a month after the India-Pakistan conflict led to airspace closure over Pakistan and most of North and West India.
Air India AI171 Crash: What We Know So Far
The Indian government has put together a committee to investigate the Air India AI171 crash, the ministry of civil aviation said Saturday. On Thursday, an Air India-operated Boeing Dreamliner carrying 242 onboard crashed in Ahmedabad, killing 241 passengers and crew members.
Civil Aviation Minister Ram Mohan Naidu said the committee has been given a three-month window to submit a report. Meanwhile, a separate technical investigation will be run by the Aircraft Accident Investigation Bureau.
On Friday, the black box was recovered from the aircraft's debris. Authorities expect the black box to play a key role in ascertaining the cause behind the crash that occurred just moments after takeoff. The same aircraft had completed its journey from Paris to Delhi to Ahmedabad without incident a few hours prior.
Precautionary action has been initiated since the accident. Indian aviation watchdog Directorate General of Civil Aviation (DGCA) has ordered extended safety checks on all Boeing 787 aircraft in the Indian fleet. On Saturday, Air India said that it had completed inspections on nine planes, and the remaining 24 would be inspected within the provided timeline.
'These checks are being carried out on the Boeing 787 fleet as they return to India, before being cleared for their next operations,' an Air India spokesperson said.
Meanwhile, authorities have also been focusing on identifying victims and assisting next of kin. DNA tests are being conducted to match remains with family members. On Sunday, Air India said, 'We have established contact with the next of kin/relatives of all passengers and crew members, expressing our condolences and helping them with the next steps,' adding that over 400 family members reached Ahmedabad and were being assisted by the airline's teams.
The airline's parent company the Tata Group announced a financial support of INR 10 million ($116,000) to all the deceased in the crash, including those on-ground in the medical college where the plane crashed. On Saturday, Air India said that it will be providing an additional interim payment of INR 2.5 million ($29,000) each to the families of the deceased and to the survivor, to help address immediate financial needs.
Cordelia Cruises Files Draft Papers for IPO
India-based Waterways Leisure Tourism, the operator of Cordelia Cruises, has filed its draft papers for an IPO of up to INR 7.27 billion ($84.5 million), Skift has reported. The move comes as the company looks to ramp up its capacity and capitalize on India's growing appetite for leisure travel.
Cordelia plans to use INR 5.5 billion ($64 million) from the IPO proceeds to fund lease rentals for these ships through its step-down subsidiary, Baycruise Shipping and Leasing (IFSC). The remaining would be used for general corporate purposes.
At present, the company has one cruise vessel - the MV Empress. Cordelia runs cruises to domestic destinations such as Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam, and Puducherry. It also offers international itineraries to Sri Lanka and has also sold cruise tickets for its first-time sail to Thailand, Singapore and Malaysia.
Cordelia has also signed an agreement with Norwegian Cruise Line to lease two ships - Norwegian Sky and Norwegian Sun. Through this, Cordelia is planning to expand its operations to more ports across India, Southeast Asia, and the Middle East, it said.
The company is counting on forecasts that project India's overnight cruise market to grow from INR 8.9 billion ($103 million) in fiscal 2025 to INR 48 billion ($557 million) by fiscal 2030, at a compound annual growth rate of 35-40%. As of fiscal 2024, the company claims it holds a 65% share of the overnight ocean and coastal cruise industry in India.
Goa Tourism Minister Seeks Air Connectivity, Strong Concert Economy
Goa tourism minister Rohan Khaunte last week met Indian minister of tourism Gajendra Singh Shekhawat and civil aviation minister Ram Mohan Naidu to discuss strategies for enhancing the state's tourism landscape. His focus remained on air connectivity and infrastructure for experience tourism, along with cultural promotion and concert economy.
The state is seeking more direct international connectivity as well as improved viability for domestic routes. 'By building a concert economy and strengthening aviation linkages, we aim to make Goa globally accessible while preserving its soul,' Khaunte said in a statement.
Goa has been at the center of tourist complaints since last November. Tourists have spoken against the exploitation of visitors by taxi drivers as the state continues to ban Uber and India-based cab aggregator Ola after pressure from local taxi operators. Visitors on social media also said that Goa lacked cleanliness as the beaches were littered with garbage and lacked order, especially when compared to the beaches in Maldives or Thailand.
The state, meanwhile, has been trying to diversify its visitor base and offerings. Last June, in an interview with Skift, Khaunte shared the state's vision to attract digital nomads. 'Digital nomads represent a high-spending segment that significantly boosts the local economy. We already host over 10,000 digital nomads from within India, and we aim to increase this number by creating the ideal environment for remote work,' he said.
Khaunte also wants a new image for the state, moving away from the 'Goa mein kuchh bhi chalta hai' (anything goes in Goa) mentality. 'We need good tourists coming in who are responsible enough,' Khaunte told Skift.
How India's GenZ Is Traveling
Indian GenZ are increasingly choosing to travel solo, a deviation from India's long tradition of family travel, Indian online travel agency Cleartrip said. GenZ has a 7% higher share of solo trips as compared to other age groups. 'GenZ travelers seek the freedom to explore offbeat, experience-driven destinations on their terms,' the company added.
They are also using digital modes of payment, including India's indigenous UPI instant payment method and debit cards more than credit cards. 'EMI-based travel payments are widely preferred, with more than 10% of Gen Z users opting for this mode,' it noted, adding that this indicates the group's aspiration to travel luxuriously regardless of budget constraints.
Convenience is a priority for GenZ travelers, as the company has witnessed a rise in meal-attached bookings among GenZ compared to older age groups.
Antara Cruises Launches Shorter Journeys for Indian Travelers
River cruising company Antara Cruises has launched new itineraries tailored to Indian travelers. The company said that it has witnessed a growing interest among the domestic market for shorter, yet immersive experiences.
The company has so far been operating longer journeys, preferred by international travelers. Now, it has launched new two to three-night itineraries. The move is expected to expand the company's footprint in the domestic market.
'We're seeing growing interest from Indian travelers seeking shorter, meaningful getaways that go beyond the conventional. These new voyages are designed to meet that need,' said Raj Singh, founder and chairman of Antara Cruises.
The Oberoi Group's 2030 Sustainability Goals
The Oberoi Group on Monday announced the launch of Elements by Oberoi, a comprehensive sustainability framework guided by earth, water, and air.
By 2030, Oberoi Hotels & Resorts aims to recycle 100% of wastewater, reduce fresh water usage per occupied room by 20%, source half of its electricity from renewable energy, and fully transition to electric transport and thermal systems.
Elements by Oberoi sets a clear path toward reducing ecological impact, imroving operational efficiency, and empowering communities. From eliminating single-use plastics and conserving water to embracing renewable energy and local partnerships, the group's initiatives are designed to create a lasting, positive impact.
Arjun Oberoi, executive chairman of The Oberoi Group, said, 'Sustainability is not just a value — it is a way of life.'
The hotels group in a press statement said, "Oberoi Hotels & Resorts believes that sustainability extends beyond the environment — it is also about uplifting people and preserving cultural identity."

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European stock markets opened higher despite escalating Israel-Iran conflict
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Israel-Iran crisis: How vital is the Strait of Hormuz for oil market?
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The flare-up of tensions between Israel and Iran has reignited concerns over the security of the Strait of Hormuz, a vital artery for the global energy market. This narrow stretch of water, just 29 nautical miles wide at its tightest point, funnels nearly a third of the world's seaborne oil and a fifth of global LNG. The U.S. Energy Information Administration (EIA) calls it the "world's most important oil chokepoint," underlining the strategic importance of the passage that links the Persian Gulf with the Gulf of Oman and the Arabian Sea. Investors and analysts are weighing the implications of a potential disruption in this narrow but critical waterway. What happens if the Strait of Hormuz is suddenly sealed off? Following Israeli attacks on Iran, Iranian officials have raised the spectre of closing the Strait—triggering a sharp surge in crude prices. According to the International Energy Agency (IEA), around 20 million barrels per day (mb/d) of crude oil and refined products passed through the Strait of Hormuz in 2023, representing nearly 30% of total global oil trade. Most of this volume—around 70%—was bound for Asia, with China, India and Japan among the largest recipients. While alternative pipeline infrastructure exists, it is limited. The IEA estimates that only 4.2 mb/d of crude oil can be rerouted via overland routes, such as Saudi Arabia's East-West pipeline to the Red Sea and the UAE's Abu Dhabi Crude Oil Pipeline to Fujairah. This capacity represents barely one quarter of the typical daily volume transiting the Strait. 'Any prolonged crisis in the Strait of Hormuz would not only disrupt shipments from key Gulf producers—Saudi Arabia, the UAE, Kuwait, Iraq and Qatar—but also make inaccessible the majority of the world's spare production capacity, which is concentrated in the Persian Gulf,' the IEA warned in a report. 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'The sheer volume of oil passing through the Strait and the scarcity of alternative routes means even brief disruptions would have significant consequences for the global market,' the IEA stated. While a full closure remains a low-probability scenario, analysts agree that the threat alone is enough to inject volatility into energy markets. Crude oil prices surged by 13% last week amid escalating tensions between Israel and Iran. Although prices have since eased slightly after reports confirmed that Iranian energy infrastructure remained untouched by Israeli strikes, the risk of further escalation—and potential disruption to global energy flows—remains elevated. In response, Wall Street analysts have been quick to assess the possible fallout from any interruption of oil and gas shipments through the Persian Gulf, particularly the Strait of Hormuz. Goldman Sachs warned that an extreme risk scenario involving a prolonged closure of the Strait could push prices well above $100 per barrel. The investment bank estimates that Iran currently produces around 3.6 million barrels per day (mb/d) of crude oil and 0.8 mb/d of condensates, with total seaborne exports averaging 2.1 mb/d so far this year—most of it heading to China. T ING's head of commodities strategy, Warren Patterson, indicates that the market has begun pricing in a substantially higher geopolitical risk premium in light of recent developments. Patterson stated that any disruption to Iranian oil flows would be enough to eliminate the expected oil surplus for the fourth quarter of 2025, likely pushing Brent crude prices toward $80 per barrel. Yet, the analyst warns that a more severe scenario—such as a disruption of shipping through the Strait of Hormuz—could be far more consequential. 'Almost a third of global seaborne oil passes through this chokepoint,' he noted. 'A significant disruption to these flows could drive prices up to $120 per barrel, particularly because most of OPEC's spare capacity is located in the Persian Gulf and would be inaccessible under such conditions.' "This escalation also has ramifications for the European gas market," he added. The Strait of Hormuz is more than just a shipping lane—it's a lifeline for global energy. With no easy detours for oil or LNG flows, its vulnerability puts markets on edge every time tensions flare in this region. A full closure of the Strait may still seem a remote event, but the mere threat is enough to rattle markets and keep oil prices elevated. As Iranian and Israeli forces continue to exchange strikes, the risk of miscalculation looms large. In a region where diplomacy is fragile and stakes are high, one wrong move could turn a regional conflict into a global energy crisis. 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