NEW DELHI – Pakistan’s banning of airspace to India has served a major blow to Indian aviation industry as one of the key players is now seeking govt support to keep the operations running.
India’s airline, Air India has now requested the government for a financial support claiming that the airline may face losses up to $600 million if Pakistan’s airspace remains closed to Indian carriers for a year.
The closure, which follows escalating diplomatic tensions between the two nuclear-armed neighbours after a deadly attack on tourists in Indian occupied Kashmir, has forced Indian airlines to reroute flights, significantly increasing fuel consumption and flight duration.
Pakistan’s banning of airspace has affected Indian carriers especially Air India which has sent a letter to the government requesting financial support.
The letter has not been made public however, it has been seen by Reuters. In the letter, Air India emphasized that the airspace ban by Pakistan has had a maximum impact on its operations due to increased fuel burn, extended crew hours, and disrupted long-haul international routes to Europe, the U.S., and Canada.
The airline has formally appealed to the Ministry of Civil Aviation, proposing a subsidy model to offset the economic blow.
“Subsidy for affected international flights is a good, verifiable, and fair option,” the letter said, adding that such assistance could be phased out once conditions normalize.
Air India, which holds a 26.5% share of the domestic market, is currently undergoing a multibillion-dollar restructuring and has already reported a $520 million net loss in FY 2023–24.
Though India had also banned its airspace for Pakistan, the closure has not affected Pakistani airlines to a great extent as compared to India.
The flights that took off from India previously took more direct western routes over Pakistani territory; however, they are now re-routing over the Arabian Sea or through central Asian corridors, extending travel times by up to 90 minutes on some sectors.
Pakistan had imposed the one-month restriction on Indian airlines following heightened diplomatic tensions after the Pahalgam incident though efforts are being made by international forces to clam the tension.
