NZ-India Trade Talks Aim to Boost Air Connectivity, But Direct Flights May Take Time

Highlights:

• New Zealand and India seek expanded air connectivity, but direct flights face delays.
• Air New Zealand (NZX: AIZ) and Air India lack direct routes, despite open skies agreements and a 2023 MOU.
• Improved aviation links could strengthen trade and tourism, but challenges in aircraft availability and route profitability persist.

Push for More Flights Between New Zealand and India

New Zealand’s trade delegation, led by Prime Minister Christopher Luxon, is seeking to enhance air connectivity with India through a potential agreement for increased flight services. However, former trade minister Tim Groser has cautioned that direct flights between the two countries may still face delays despite ongoing efforts.

At the time of writing, Air New Zealand (ASX: AIZ) does not operate direct flights to India, and Air India also lacks a direct route to New Zealand. While both nations have signed open skies agreements permitting direct flights and formalized a memorandum of understanding (MOU) in 2023 to further support direct air travel, logistical and regulatory challenges remain.

Challenges in Establishing Direct Flights

Despite strong business and tourism ties, direct air travel has yet to materialize. Industry experts cite factors such as aircraft availability, market demand, and airline route profitability as key obstacles. While increasing flight frequencies under existing agreements may be achievable in the short term, the introduction of direct services will likely take longer.

What This Means for Trade and Tourism

Aviation connectivity plays a crucial role in strengthening economic ties, facilitating easier travel for business leaders, tourists, and students. The push for improved flight links comes at a time when trade between New Zealand and India is expanding, and greater accessibility could further boost economic opportunities.

As discussions continue, stakeholders will be closely monitoring progress, with hopes that direct flights between the two nations will become a reality in the near future.

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