Air India and Air New Zealand have announced a significant codeshare partnership, marking a major step forward in strengthening air connectivity between India, Singapore, Australia, and New Zealand. The agreement was formalized through a Memorandum of Understanding (MoU) signed on March 19, 2025, in Mumbai.

The event was attended by New Zealand Prime Minister Christopher Luxon, Air New Zealand CEO Greg Foran, Air India CEO Campbell Wilson, and other dignitaries. This collaboration is expected to not only simplify travel for passengers but also boost tourism, trade, and cultural exchanges between the two nations.

Under the codeshare arrangement, passengers traveling from key Indian cities such as Delhi, Mumbai, Bengaluru, and Chennai will be able to connect seamlessly via major transit hubs like Sydney, Melbourne, or Singapore to popular destinations in New Zealand, including Auckland, Christchurch, Wellington, and Queenstown.

The codeshare will allow travelers to book their entire journey on a single ticket with coordinated baggage handling and streamlined connections. This partnership is particularly significant as it bridges the gap between two regions that currently lack direct air connectivity.

A key highlight of the MoU is the exploration of launching direct flights between India and New Zealand by 2028. While this plan hinges on new aircraft deliveries and regulatory clearances, it represents a transformative opportunity for both countries. At present, travelers face long connecting flights that can take up to 30 hours; a direct route would reduce travel time significantly and enhance convenience for both business and leisure travelers.

The introduction of direct flights could also stimulate economic activity by facilitating smoother trade relations and increasing tourism flows.

Air India CEO Campbell Wilson expressed enthusiasm about the partnership’s potential to expand Air India’s global footprint. He noted that the codeshare aligns with Air India’s broader strategy of forging alliances with leading global carriers—such as its recent agreements with Lufthansa Group and Singapore Airlines—to provide customers with greater connectivity options.

Wilson also highlighted his personal connection to New Zealand as a motivating factor in fostering closer ties between the two nations.

Air New Zealand CEO Greg Foran underscored India’s growing importance as a key market for tourism and travel demand. He pointed out that Indian visitors to New Zealand have been steadily increasing in recent years. In 2023 alone, over 87,000 Indians visited New Zealand—a 23% rise compared to pre-pandemic levels in 2019.

Additionally, data shows that over 18 million Indians actively consider visiting New Zealand annually. Foran emphasized that this codeshare partnership is an important first step toward understanding travel patterns and building demand for future direct services.

The partnership also reflects broader geopolitical and economic trends. With India emerging as one of the world’s fastest-growing economies and New Zealand seeking to diversify its international connections post-pandemic, this collaboration is well-timed. It supports both countries’ goals of fostering stronger bilateral relations through enhanced people-to-people ties and increased business opportunities.

Beyond tourism and trade benefits, the partnership could pave the way for greater cultural exchange between the two nations. New Zealand has a vibrant Indian diaspora community that plays an integral role in its multicultural fabric. Improved connectivity is likely to strengthen ties within this community while encouraging more Indians to explore opportunities in education, business, and leisure in New Zealand.

As both airlines are members of the Star Alliance network, this partnership leverages their shared commitment to providing world-class service and seamless travel experiences. With Air India undergoing significant transformation under its new ownership by Tata Group—focusing on fleet modernization and network expansion—and Air New Zealand continuing its efforts to attract international travelers post-COVID-19 recovery, this collaboration represents a win-win for both carriers.

In summary, this codeshare agreement between Air India and Air New Zealand is more than just an operational partnership—it is a strategic initiative aimed at unlocking new opportunities for connectivity, trade, tourism, and cultural exchange between two vibrant regions of the world.

Saudi Arabia’s newest national carrier, Riyadh Air, is gearing up for a bold entry into the vibrant and fast-growing Indian aviation market, with plans to launch flights to five key Indian cities in the summer of 2026.

The airline is targeting Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai as its initial points of entry, signaling a strategic move into one of the world’s most dynamic air travel sectors.

While Delhi and Mumbai are natural choices as India’s political and commercial epicenters, Riyadh Air’s decision to include Bengaluru, Hyderabad, and Chennai reflects a deeper understanding of India’s evolving economic landscape.

Bengaluru, known as the country’s IT powerhouse, boasts strong business links with the Middle East, while Hyderabad has rapidly emerged as another major technology hub. Chennai, the gateway to Tamil Nadu’s industrial heartland, rounds out this mix of traditional and emerging metropolitan regions.

However, the path to launching international flights in India is complex. Riyadh Air will need to secure traffic rights amidst a competitive bilateral framework, negotiate airport slots at packed Indian airports, and coordinate extensively with local aviation authorities.

Establishing ground handling, catering, and passenger services across five cities also demands substantial investment and partnerships on the ground.

The routes hold significant promise. The travel corridor between India and Saudi Arabia is buoyed by a spectrum of passengers – from the millions of Indians journeying for religious pilgrimages like Umrah and Hajj, to business travelers engaged in sectors such as IT services, construction, and oil and gas. 

The large Indian expatriate community in Saudi Arabia further guarantees steady demand for direct flights, often preferred over connecting flights through regional hubs like Dubai or Doha.

Yet Riyadh Air faces hurdles. Launching five routes simultaneously is an ambitious endeavor more commonly approached through a phased strategy.

The summer 2026 launch date aligns with the delivery of new Airbus A321-200 aircraft, ideal for these routes due to their range, passenger capacity, and efficiency for flights spanning 3.5 to 5 hours. Crafting flight schedules that cater specifically to Indian business travelers’ preferences will be critical for success.

A key challenge lies in navigating the limited bilateral air services agreements (BASA) between India and Saudi Arabia, which may restrict flight frequencies and capacity.

Furthermore, lasting success depends on Riyadh Air’s ability to offer competitive pricing while maintaining the high service standards expected of Gulf carriers.Indian travelers are notoriously price-conscious and quick to choose carriers delivering superior value and reliability.

If Riyadh Air can master these complexities, the airline’s bold five-city launch could serve as a robust foundation for broader expansion across South Asia, potentially encompassing other Indian cities and neighboring regional markets such as Thailand and Bangladesh.

With ample time for meticulous planning, Riyadh Air is poised to thoughtfully enter a challenging but opportunity-rich market, facing stiff competition from established carriers but bringing fresh capacity and options to one of the world’s fastest growing aviation corridors.

Brazilian aerospace giant Embraer has set an ambitious target to deliver 100 commercial aircraft annually by 2028, a milestone the company last reached in 2017, CEO Francisco Gomes Neto told Reuters. While the manufacturer has steadily increased deliveries since 2021 as part of its recovery from the pandemic-induced aviation crisis, persistent supply chain issues are expected to delay hitting the 100-unit mark until 2028.

The company forecasts delivering between 77 and 85 commercial jets in 2025, up from 73 in 2024, reflecting a roughly 10% year-on-year increase. Gomes Neto emphasized that 2026 will remain a challenging year production-wise due to ongoing bottlenecks, but he projects strong growth resuming in 2027, with 2028 marking the return to triple-digit deliveries.

Embraer continues to grapple with supply disruptions, including delays in fuselage parts sourced from Europe and GE Aerospace engines for its first-generation E1 jets. The situation has improved compared to last year’s engine supply delays for the next-generation E2 jets, yet the supply chain remains vulnerable.

Despite these obstacles, Embraer’s backlog of orders is solid and production slots are nearly fully booked through 2026 and 2027, extending partially into 2028. The recent firm order of 50 E195-E2 jets from U.S.-based low-cost carrier Avelo Airlines, marking Embraer's first U.S. deal for E2 jets, highlights robust demand. The company also secured orders earlier in 2025 from Japan’s ANA, Scandinavian Airlines SAS, and U.S. regional carrier SkyWest for a mix of E2 and E1 models.

Looking ahead, Gomes Neto noted that further E2 orders may be announced before year-end as multiple sales campaigns proceed, though new sales for the E1 fleet—which primarily serves the U.S. market—are not expected in 2025.

Regarding manufacturing strategy, Embraer currently assembles both E1 and E2 aircraft at its Sao Jose dos Campos plant in Brazil. Despite the U.S. imposing a 10% tariff on Brazilian-built aircraft, the company is not planning to establish a U.S. assembly line for E2 jets at this stage. Any consideration for a second assembly facility closer to major buyers would depend on a significant surge in orders, which is not yet evident.

“We prefer to present Embraer’s overall business case,” Gomes Neto explained, highlighting plans to purchase $21 billion from U.S. suppliers over the next five years while exporting $13 billion. He cautioned that establishing a new line would require substantial investment and risk increasing costs, potentially making the aircraft less competitive.

Embraer also maintains assembly lines for some executive jets in Florida and has proposed a $500 million U.S. production line for its C-390 military cargo aircraft, contingent on U.S. government procurement decisions.

Analysts view Embraer’s delivery target as ambitious but achievable if supply chain pressures ease and demand continues to grow, especially for regional jets that address evolving air travel needs. The company’s resilience in navigating post-pandemic recovery and maintaining a robust order book underscores its position as the world’s third-largest commercial aircraft manufacturer.

flydubai has announced a new strategic interline agreement with Romania’s national carrier, TAROM, expanding travel options by providing passengers seamless access to 15 destinations across TAROM’s network via Bucharest International Airport (OTP). This partnership enables flydubai customers to enjoy simplified travel itineraries, single-ticket bookings, and through-check-in of baggage to their final destination, enhancing convenience and connectivity.

Through the agreement, travelers flying between the UAE and Romania can now easily connect to key destinations within TAROM’s domestic and international network. These include major European cities such as Athens, Amsterdam, Brussels, Cluj-Napoca, Frankfurt, Madrid, and Paris, among others. This development supports greater trade, tourism, and cultural exchange between Dubai and Eastern and Central Europe.

flydubai operates double daily flights from Dubai International Airport (DXB) to Bucharest Henri Coandă International Airport and will be adding Iași as its second Romanian destination starting from 19 September 2025. The airline has steadily grown its presence in Romania since launching flights to Bucharest in 2012, responding to rising passenger demand.

The partnership not only broadens flydubai’s network but also reinforces Dubai’s role as a global aviation hub by linking the UAE to a wider range of European destinations through efficient connections with TAROM. Business Class passengers on flydubai enjoy lie-flat seats, international cuisine, and immersive entertainment, while Economy Class travelers benefit from comfortable reclined seats with adjustable leather headrests.

With a fleet of 93 modern Boeing 737 aircraft, flydubai serves over 135 destinations in 57 countries, having launched more than 100 previously underserved routes, demonstrating its commitment to expanding global connectivity and passenger choice.

TAROM's network, reachable through this agreement, includes approximately 28 destinations across 22 countries, covering vital European cities and regional hubs, making it a strategic partner for flydubai’s continued expansion into Eastern and Central Europe.

Overall, the strategic interline agreement between flydubai and TAROM offers travelers greater flexibility, convenience, and choice, allowing seamless access between the UAE, Romania, and many prominent European destinations. This collaboration is expected to boost business and leisure travel, supporting economic ties and tourism growth in the region.

Hong Kong is increasing its Air Passenger Departure Tax (APDT) for the first time in 22 years, effective October 1, 2025. The tax will rise from HK$120 (approximately $15) to HK$200 (about $25), a 67% increase. This tax applies to passengers aged 12 and above departing by air from Hong Kong International Airport (HKIA).

The increase was enacted through the Air Passenger Departure Tax (Amendment) Bill 2025, passed by the Legislative Council in May 2025. The government anticipates that the hike will generate around HK$1.6 billion in annual revenue.

To maintain Hong Kong's competitiveness as an international aviation hub, exemptions to the tax have been expanded. Previously, direct transit or connecting flight passengers who remained airside and those who arrived and departed on the same day were exempt. From October 1, 2025, new exemptions will include:

• Passengers who arrive and depart by aircraft within 48 hours.
• Passengers arriving by land or sea and departing by aircraft within 48 hours.

Passengers eligible under these new exemptions will still be charged the tax as part of their ticket but can claim a refund through a forthcoming online portal managed by the airport. This refund mechanism aims to encourage more transfer passengers, especially from the Greater Bay Area, enhancing HKIA’s role as a regional hub.

The APDT is typically absorbed into the price of the flight ticket, so passengers may not notice a significant fare difference when booking. Tickets purchased before October 1, 2025, will not be affected by the increased tax.

While some officials worry the increase could impact Hong Kong's attractiveness compared to regional competitors, others view the hike as reasonable and necessary for government revenue and airport infrastructure support.

Gulf Air, the national airline of the Kingdom of Bahrain, has taken a major step in its long-term fleet renewal by signing an agreement valued up to USD 4.6 billion with Boeing to acquire 18 Boeing 787 Dreamliners. Powered by GE Aerospace engines, the new aircraft will enhance Gulf Air’s operational efficiency, sustainability efforts, and passenger comfort.

The deal was formalized during the official visit of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, to Washington D.C., symbolizing the strengthening economic and commercial ties between Bahrain and the United States.

Khalid Taqi, Chairman of Gulf Air Group, emphasized the significance of the acquisition: “Adding 18 additional 787 Dreamliners an aircraft highly appreciated by our customers increases our passenger capacity by over 20%, marking a crucial milestone in our growth and modernization journey. This also aligns with our strategy to deliver a more fuel-efficient, environmentally friendly, and passenger-focused travel experience. 

Partnering with Boeing and GE Aerospace, global leaders in aviation innovation, affirms our confidence in advancing Gulf Air’s future. This collaboration also highlights the strong and enduring partnership between Bahrain and the USA.”

The Boeing 787 Dreamliner is celebrated worldwide for its fuel efficiency, cutting-edge technology, and superior passenger experience. It will play a central role in supporting Gulf Air’s long-haul operations, route expansion, and sustainability initiatives.

Stephanie Pope, President and CEO of Boeing Commercial Airplanes, commented, “We are proud to deepen our more than six-decade partnership with Gulf Air by delivering the 787 Dreamliner. This investment underscores Gulf Air’s commitment to innovation and sustainable growth, strengthening Bahrain’s status in the global aviation industry.”

In conjunction with the aircraft order, Gulf Air and Boeing signed a Memorandum of Understanding (MOU) to explore establishing maintenance, repair, and overhaul (MRO) workshop capabilities in Bahrain. This initiative, still in its early stages, aims to localize MRO operations, develop local aviation talent, create jobs, and bring world-class services aligned with the latest technologies.

This strategic partnership further reinforces Gulf Air’s ambition to position Bahrain as a key aviation hub in the region, contributing to the Kingdom’s goals for economic diversification and enhanced global connectivity.