Iran war drives charter flight prices to Rs 50–70 lakh as airspace closures, insurance costs disrupt travel

Luxury private jets are in top demand in the Gulf

• Arranging additional flights has proven difficult due to regulatory hurdles
• Air India and IndiGo are charging between Rs 45,000 and Rs 65,000
• Risks associated with operating flights in a conflict zone have also pushed insurance costs significantly higher

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Passengers seeking to return to India from the Gulf are paying anywhere between Rs 50 lakh and Rs 70 lakh for private charter flights, as airspace closures, soaring insurance premiums and a shortage of aircraft disrupt regular services in the region.

The escalating West Asian conflict has severely affected commercial aviation routes, forcing many travellers to turn to private charter operators to secure a seat back home. However, limited aircraft availability and restrictions on scheduled flights have sharply pushed up charter costs.

Demand outstrips supply 

Charter companies say they are scrambling to source every available aircraft to meet the surge in demand. Operators are deploying not only smaller seven–eight seater luxury jets such as the Hawker 800, Learjet and Citation CJ but also large commercial aircraft like the Airbus A320 and Boeing B737 capable of carrying up to 180 passengers.

Ashish Kumar, CEO of Flying Birds Aviation, said a dedicated charter flight on a luxury aircraft with seven to eight seats now costs between Rs 50 lakh and Rs 70 lakh.

“A dedicated charter flight on a 7–8-seater luxury aircraft costs around Rs 50–70 lakh, depending on the aircraft type and destination cities in India. People are ready to pay premiums for the return journey,” Kumar said.

With thousands of travellers trying to get out of the conflict-hit Gulf region, travel agencies have been reaching out to charter companies, he said.

“Travel agencies have been flooding us with requests. Based on such need, we have also leased aircraft from airlines at higher rates and operated charter flights carrying 150–180 passengers,” Kumar said.

However, arranging additional flights has proven difficult due to regulatory hurdles and operational challenges.

According to Kumar, aircraft registered outside India require a minimum of five days to secure operating permits from the Directorate General of Civil Aviation (DGCA) and other Indian authorities.

“Foreign registered aircraft need a minimum of five days for permits from the DGCA and Indian authorities. We have three large charter flights waiting for movement but due to airspace closure and permission issues, we are stuck,” he said.

Fluid ground situation weighs on air travel 

Commercial airfares on the Gulf–India sector have also surged amid limited availability. Airlines such as Air India and IndiGo are charging between Rs 45,000 and Rs 65,000 for a non-stop economy class ticket from Dubai to Mumbai for travel on March 10. Normally, the fare on the route is below Rs 20,000.

Even when charter operators obtain the necessary clearances, operating flights from planned destinations remains challenging due to shifting airspace restrictions.

For instance, Oman on March 8 asked private jet operators to avoid the Muscat International Airport, as authorities prioritise government and commercial flights following fresh airspace disruptions.

Demand for evacuation flights has also shifted geographically, as the conflict intensifies.

“Maximum demand was initially from the UAE but now it is from Bahrain since the maximum bombings are happening there, followed by Kuwait, Saudi Arabia and then the UAE. At the moment, Kuwait and Bahrain airspace is completely shut. So, we are asking people to travel by road to nearby airports or neighbouring countries to take flights,” Kumar said.

Civil aviation ministry data shows that Indian airlines had cancelled more than 2,000 flights by March 8 since the start of the Iran conflict.

Air India has also seen a sharp spike in bookings. All seats on its Dubai–Mumbai flights for travel between March 11 and March 15 are sold out.

To address the surge in demand, Air India group has begun operating services from Jeddah and Muscat to several Indian cities including Mumbai, Delhi, Kannur, Kochi, Tiruchirappalli, Thiruvananthapuram, Bengaluru, Hyderabad and Kozhikode since March 9.

Insurance costs mount

The risks associated with operating flights in a conflict zone have also pushed insurance costs significantly higher for charter operators.

While maritime freight costs have surged after insurers withdrew war risk cover for vessels operating in the Gulf, aviation insurers have raised premiums sharply for aircraft used in evacuation and repatriation missions. Industry officials say insurance premiums for such aircraft have increased by between Rs 30 lakh and Rs 90 lakh a plane.

“Besides paying higher lease rates for aircraft, there is a 10 percent rise in insurance premium due to the risk involved. Flying between missiles is not an easy job,” said a Delhi-based charter air provider.

With regional airspace closures continuing and commercial capacity constrained, charter operators expect elevated prices and huge demand for flights between the Gulf and India in the coming days.