DELHI- Air travel between Canada and India faces a challenging winter season as diplomatic relations between the two countries deteriorate.
This comes on top of existing pressures from reduced student visa issuances by Canada.
In 2023, over 2.2 million passengers traveled between Canada and India. Air Canada (AC) and Air India (AI) dominated this market, capturing 45% of the traffic. Despite current challenges, airlines are expanding their winter schedules, intensifying competition.
Air India plans to double its Delhi-Toronto service from November 1, adding three new flights. Air Canada is set to resume its seasonal Mumbai route and launch a new Calgary-Delhi flight via London.
However, these expansions come amid declining yields. A senior airline executive reported lower yields on India-Canada routes in the July-September quarter, typically a peak period for student travel. The executive cited Canada’s stricter visa policies as a key factor in reduced demand.
Pricing pressures have intensified, with some West Asian airlines offering incentives to travel agents to sell lower fares. Another executive described 2023 as “a difficult year” for the sector.
The India-Canada air travel market primarily serves students, migrants, business travelers, and those visiting friends and relatives (VFR).
Canada also represents a significant source of tourism for India, ranking as the fifth-largest market and accounting for 4% of arrivals in 2023. However, this figure largely consists of Canadian citizens of Indian origin visiting family in India.
India has recalled six of its diplomats, including the high commissioner, from Canada. In a reciprocal move, India has also expelled six Canadian diplomats from its territory. These actions come amid escalating tensions over Canada’s approach to Sikh extremism within its borders.
The Indian Ministry of External Affairs (MEA) issued a strong statement on Monday, refuting allegations made by the Canadian government. The Canadian authorities had accused Indian diplomats of involvement in criminal activities. The MEA categorically dismissed these claims, labeling them as “preposterous imputations.”
In its statement, the MEA attributed these accusations to what it perceives as the political agenda of Prime Minister Justin Trudeau’s government.
The Indian ministry suggested that these allegations stem from “vote bank politics,” implying that the Canadian government’s actions are motivated by domestic political considerations rather than substantiated concerns.
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