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India Widens West Asia Flights From March 12, Citi Cut Pulls IndiGo Lower

Fresh approvals aim to keep traffic flowing despite West Asia tensions, prompting investor reassessment of fuel and governance risks.

Overview

  • Government plans take effect March 12 with Air India and Air India Express resuming Riyadh services and IndiGo launching MumbaiRiyadhMumbai flights.
  • DGCA is coordinating extra slots and has cleared Muscat International Airport as an enroute alternate, with 45 inbound flights carrying 7,407 passengers on March 9.
  • SpiceJet has received facilitation for alternate-airport approvals, and Akasa Air was advised to align its planned MumbaiRiyadh launch with current operating conditions.
  • Air India announced a phased fuel surcharge on domestic and international routes, including Air India Express, in response to higher jet-fuel costs.
  • On March 12, Citi cut IndiGo’s target price to ₹5,100 citing geopolitical and fuel headwinds, sending shares down as much as 3.6% after a recent rebound; CEO Pieter Elbers has resigned and Rahul Bhatia is serving as interim head.