As missiles rain in Gulf skies, Bengaluru’s luxury cabs feel the pinch: Why this premium segment is facing ‘total collapse’

“There were a lot of executives who used to travel from and to Bengaluru, and the luxury taxis were dedicated to them. Some are run by big hotel establishments and even travel agencies. But it has stopped almost completely. The bookings in these big hotels have also gone down sharply,” Holla added.

He said disruptions in air travel, security concerns, and the cancellation of several international trips have significantly slowed tourism activities. As a result, tourist vehicles have seen a sharp drop in demand, and many vehicles have remained idle for nearly the past ten days.

The number of business-class travellers, primarily investors and business delegates, has declined considerably, further affecting the demand for tourist transport services, he added.

“If the situation continues, it could lead to serious economic difficulties for tourist vehicle owners, drivers, and the hospitality sector, including hotels and related services. Historically, the first and most immediate impact of war is often felt by the tourism and hospitality industries,” Holla said.

On Tuesday, 19 flights at KIA were cancelled due to airspace restrictions. These included nine arrivals and ten departures, primarily to Doha, Abu Dhabi, and Dubai. While data shared by airport authorities indicate that around 300 flights have been cancelled since March 3, sources suggest the actual number is much higher, as layover flights from Western countries have also ceased operations.

No drop in airport footfall

However, in a paradox, a Bangalore International Airport Limited (BIAL) spokesperson said the average footfall has not remarkably decreased despite flight cancellations. “The average footfall has remained at 1.20 lakh, as it was in 2025. We do not have the breakdown of international and domestic flights, but the average numbers have not been significantly affected.”

In 2025, KIA saw a total passenger traffic of 43.82 million, with an average of 1,20,000 passengers daily. The airport also experienced a year-on-year growth of 28.7 per cent in international passenger traffic. However, this growth may decline this year due to the ongoing war.

The Karnataka government has been tracking residents stranded in West Asia. As of March 5, 345 Karnataka residents were identified as stranded, with 156 having successfully returned. The UAE holds the highest number of stranded residents (204), followed by Bahrain (62) and Qatar (43). Fewer stranded people have been reported from Kuwait (17), Saudi Arabia (10), Iran (6), Oman (2), and Turkey (1).