India-Canada Airfares Skyrocket As Bilateral Relations Sour

travellersLast-minute airfares on routes between India and Canada have surged significantly as travellers expedite their plans amidst the escalating tensions between the two nations.

Data from travel platforms reveals that spot fares for direct flights between New Delhi and Toronto have surpassed Rs 1.46 lakh, while on the Toronto-Delhi route, they exceed Rs 1.01 lakh. Similar rates apply to New Delhi-Montreal flights, costing over Rs 1.55 lakh, and in the reverse direction, over Rs 1.16 lakh. Late bookings for New Delhi-Vancouver flights now require an expenditure of approximately Rs 1.33 lakh, while travellers coming from Vancouver will need to budget nearly Rs 1.3 lakh.

Travel portals report a surge of up to 25 per cent in last-minute fares, with late bookings comprising both tourists and individuals visiting friends and family in either country.

Air India and Air Canada are the exclusive airlines offering direct flights on this route, totaling 48 flights per week between the two nations. Air India operates daily flights between New Delhi and Toronto and New Delhi and Vancouver, while Air Canada offers daily service between New Delhi and Toronto, with three weekly flights to New Delhi from Montreal.

The India-Canada air traffic market accounts for 1.2 per cent of the total international passenger traffic to and from India, with India ranking as Canada's fourth-largest international air transport market. In FY23, 678,614 passengers traveled between the two countries, while the total international traffic to and from India reached 54 million.

Recently, India suspended visa services in Canada due to "operational reasons." The private agency, BLS, responsible for initial visa application screenings for Canadians, posted a notice on its website stating, "Due to operational reasons, Indian visa services have been suspended with effect from 21 September 2023, until further notice. Please continue checking the BLS website for updates."

Relations between India and Canada soured when Canadian Prime Minister Justin Trudeau suggested a "potential link" between Indian government agents and the killing of Khalistani leader Hardeep Singh Nijjar in June. India dismissed this claim as "absurd and motivated." Nijjar, designated as a terrorist in India, was shot outside a Gurdwara in a parking area in Surrey, British Columbia, Canada, on June 18.

India and Canada signed their first air transport agreement in 1982, which was expanded in 2011, allowing each country to operate 35 flights per week. Further expansion took place in November 2022, permitting designated airlines to operate an unlimited number of flights between India and Canada. This agreement grants Canadian carriers access to Indian cities including Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai, while Indian carriers gain access to Toronto, Montreal, Edmonton, Vancouver, and two additional points to be selected by India.

In FY23, nearly 62 per cent of total traffic between the two countries was on the Toronto-New Delhi route, with an additional 25% on the Vancouver-New Delhi route, followed by 13 per cent on the Montreal-New Delhi route. The Toronto-New Delhi route saw around 420,798 passengers, while Vancouver-New Delhi recorded 171,982 passengers, and Montreal-New Delhi had 85,834 passengers.