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Negotiations between Indian airline and Western Sydney Airport remain unresolved

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The Premier of New South Wales, Chris Minns, has expressed optimism about attracting Indian airlines to Western Sydney Airport, emphasizing the state’s commitment to securing direct flight routes. During a recent meeting with representatives from Air India in New Delhi, no formal agreement was established, but discussions were held as part of Minns’ four-day trip to India aimed at promoting investment opportunities—his first international venture since taking office.

Before engaging with Air India, Minns and Treasurer Daniel Mookhey visited the Gurudwara Bangla Sahib, a Sikh temple in New Delhi, where they interacted with volunteers providing thousands of free meals to those in need. While acknowledging the significant poverty in India, Mookhey highlighted the potential of the expanding middle class as an opportunity for New South Wales, stating, “The Indian middle class is traveling, and we want more of them visiting Sydney.”

Air India is currently in the midst of fleet modernization and rebranding efforts, following a tragic crash in Ahmedabad last year that resulted in 260 fatalities. The airline has sought $1.5 billion in new equity from its co-owners to address financial challenges.

Mookhey remarked that Western Sydney could ensure a reliable flow of passengers for Air India, especially during uncertain times for the airline. “We offer a fantastic destination with a large diaspora that will support travel, regardless of fluctuations in tourism,” he commented.

The state government’s initiative to attract Air India comes at a difficult juncture for the global aviation sector, which is facing rising jet fuel prices. Air India has recently suspended certain international routes and reduced flight frequencies, including those to Sydney and Melbourne.

While the Premier did not specify what would constitute success in his negotiations with the airline, he conveyed that the mission was intended to deliver a strong message of intent. “We hope to persuade Air India that we are serious about wanting them here,” he noted.

Western Sydney Airport is set to welcome Jetstar and Air New Zealand in October, followed by Singapore Airlines in November. VietJet and Qantas are also scheduled to commence operations in January and March, respectively.

The Premier indicated that the government might explore specific financial incentives to entice an Indian airline to establish operations at Western Sydney. “We have maintained an air attraction fund,” said Minns. “The Treasurer has been prudent with taxpayer funds, which is important, but he has also ensured this fund remains available because it is essential.”


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