‘Short-Term Turbulence, Long-Term Bullishness’: Star Air CEO Simran Singh Tiwana On Aviation Crisis And Fuel Prices
‘Short-Term Turbulence, Long-Term Bullishness’: Star Air CEO Simran Singh Tiwana On Aviation Crisis And Fuel Prices Curated By, Last Updated: May 18, 2026, 19:39 IST
‘Short-Term Turbulence, Long-Term Bullishness’: Star Air CEO Simran Singh Tiwana On Aviation Crisis And Fuel Prices Curated By, Last Updated: May 18, 2026, 19:39 IST India airlines face rising ATF costs, weak rupee and global tensions, Star Air CEO hails Rs 5000 crore ECLGS but warns more support may be needed, stays bullish on regional growth. Captain Simran Singh Tiwana, CEO, Star Air. India’s airlines are facing mounting pressure from rising aviation turbine fuel (ATF) costs, geopolitical instability in West Asia and a weakening rupee — challenges that have prompted government intervention and forced carriers to reassess expansion plans. Speaking to News18, Star Air CEO Captain Simran Singh Tiwana said the current environment is difficult but not comparable to the Covid-era aviation crisis. “During the pandemic, there were no takers. That is not the case today. Demand still exists — it’s just become more expensive to operate," Tiwana said. The comments come as airlines contend with elevated fuel prices linked to global tensions and supply chain disruptions affecting aircraft deliveries and maintenance.
Govt’s Rs 5,000 Crore Credit Support ‘A Good Beginning’ Asked about the Centre’s Rs 5,000 crore Emergency Credit Line Guarantee Scheme (ECLGS) support for airlines, Tiwana said the move showed the government had acted quickly to cushion the industry against emerging pressures. “The Government of India moved very swiftly to a crisis which is still brewing," he said, adding that few countries had taken similar measures to address aviation stress linked to geopolitical developments. While welcoming the support, Tiwana said credit relief alone would not solve deeper structural pressures facing airlines. “These schemes help, but they are delayed repayment plans. Businesses still need strong fundamentals," he said. He added that if elevated fuel prices and global uncertainty persist, further intervention may be needed. “For a market of India’s size, this may not be sufficient if the crisis continues," he said. Weak Rupee, Dollar Payments Add To Cost Burden Beyond fuel prices, airlines are also dealing with rupee depreciation, which increases costs tied to aircraft procurement, maintenance and other dollar-denominated payments.
“There is a steep impact… some costs have to be paid in US dollars, and we can’t run away from that," Tiwana said. According to the Star Air chief, the airline has deferred certain capital expenditure decisions and worked with vendors to manage costs amid uncertainty. PM Appeal On Overseas Spending Could Affect International Carriers Responding to Prime Minister Narendra Modi’s appeal urging restraint in overseas spending to preserve foreign exchange reserves, Tiwana said airlines dependent on international routes could feel pressure. “It will definitely impact airlines operating scheduled international services," he said, though he noted Star Air’s domestic-only operations shield it from such risks. Regional Connectivity Remains The Long-Term Growth Story Despite short-term turbulence, Tiwana remained optimistic about India’s regional aviation expansion, especially after fresh government pushes to strengthen connectivity and airport infrastructure. “Sixty-five per cent of India’s population comes from Tier-2 and Tier-3 cities," he said, arguing that regional connectivity would be central to India’s long-term economic ambitions. Star Air, he said, has opted to reduce flight frequencies on some routes rather than suspend services entirely.
“We continue serving markets, even at lower frequency, instead of disconnecting them," he said. ‘Very Bullish On The Long Term’ For now, conserving cash remains the industry’s priority as airlines navigate fuel volatility and global uncertainty. “The short-term view is conservative," Tiwana said. “But the long-term perspective for Indian aviation is massive." Pointing to growing demand from smaller cities, new airport infrastructure and expanding aviation ecosystems, Tiwana said he remains “very bullish" on India’s long-term aviation story. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit First Published: May 18, 2026, 19:39 IST News india ‘Short-Term Turbulence, Long-Term Bullishness’: Star Air CEO Simran Singh Tiwana On Aviation Crisis And Fuel Prices Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy Loading comments...
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