By Arindam Majumder
Copyright indiatimes
Airlines are cutting back on flights between India and the US, anticipating a decline in travel as the Trump administration turns hawkish about New Delhi, tightening visa rules amid an unresolved tariff war.On Friday, the US announced that companies would need to pay a $100,000 fee for new H-1B visa applications. The step is being seen as a big blow to one of the most important strategic long-haul markets for airlines.Currently, the United States issues 85,000 H-1B visas annually, with India accounting for nearly 75% of these permits.Also Read| Will the $100,000 H-1B fee affect you? Three key points from the US clarification“This new H-1B visa policy is likely to discourage travel among a very significant segment of Indian professionals working in the U.S. While we may see a short-term spike before the fee deadline, in the longer run, it could reduce family visits and non-essential trips to India,” said Ravi Gosain, President, Indian Association of Tour Operators. “Given that over 70% of H-1B visas are held by Indians, the impact on certain India–U.S. routes could be notable.”Live Events The H-1B curbs follow a period of tension between the two countries after the White House effectively imposed 50% tariffs – the highest in the world – for a broad swathe of merchandise exports from India.This January, airlines are expected to operate 27% fewer seats between India and the US as compared with the previous year, according to Cirium, an aviation research company. The cut is primarily led by Air India, which would operate 278 flights compared with 444 flights last January.Industry executives said major Middle East carriers like Emirates and Qatar Airways, which carry passengers between India and US through Dubai and Doha, are also seeing a reduction in passenger flow.Also Read| From shock to scramble: How a $100,000 H-1B fee rattled US big tech for 24 hoursFor airlines, the complexity and cost of operating direct flights between India and the US has already increased as US carriers have been avoiding Russian airspace since 2022. Air India, too, has been unable to use Pakistani airspace from March.Air India has suspended flights to Washington starting this month saying it would be short of planes due to a planned retrofit program.Airline officials say that while there has been a gradual decline of occupancy on flights to and from the US, the decline has been sharp since March after the US Immigration and Customs Enforcement started raiding and detaining people. According to data from the National Travel & Tourism Office of the U.S. Commerce Department, the number of Indians travelling to the US dropped by 15% in August. It was the third consecutive month of decline, following an 8% year-on-year drop in June and 6% in July.“If this sustains, there will be a structural change to a market considered evergreen by airlines. The US market was already getting softer following the uncertainty created by the immigration policies as many students and their parents did not travel this year. If tech companies hire Indian talent due to the H1b visa changes, that will take away a source of air traffic,” said an airline official.Add as a Reliable and Trusted News Source Add Now!
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