China and India have agreed to resume direct flights between the two countries for the first time in more than five years. It marks a significant step toward mending diplomatic ties and restoring travel links disrupted by the pandemic, followed by a deadly border clash. Although no specific date has been set, state media reported that the two governments will finalize an updated air services agreement and restart flights “at the earliest” opportunity.

The resumption of direct flights will be a boon for both Chinese and Indian carriers. However, the Indian aviation market has advanced considerably in the last five years, which will likely reset the balance of power. Prior to the pandemic, Chinese carriers carried out more than 80% of direct flights, but a resurgent Air India an

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