Air India Seeks Aid as Pakistan Airspace Ban Hits Routes
Indian airlines are bracing for higher fuel costs and longer journey times after Pakistan shut its airspace to the country’s carriers in a tit-for-tat retaliation following an attack on tourists in Kashmir last week.
Air India on April 27 asked the Indian government for a “subsidy model” proportionate to the economic hit, estimating a loss of more than 50 billion Indian rupees ($591 million) for each year the ban lasts, according to a letter sent by the airline to the Civil Aviation Ministry seen by Reuters.
“Subsidy for affected international flights is a good, verifiable and fair option … the subsidy can be removed when the situation improves,” the letter said.
“The impact on Air India is maximum due to airspace closure, due to additional fuel burn…additional crew.”
Air India declined to comment. India’s Civil Aviation Ministry did not immediately respond to a request for comment.
Air India’s letter was sent after the government asked its executives to assess the impact of the airspace ban on Indian carriers, said a source with direct knowledge of the matter.
The Tata Group-owned airline is amid a multi-billion dollar turnaround after a period of government ownership, and jet delivery delays already constrain growth from Boeing and Airbus. It reported a net loss of $520 million in fiscal 2023-2024, on sales of $4.6 billion.
Air India, which has a 26.5% market share in India, flies to Europe, the United States, and Canada, often crossing Pakistan’s airspace. It operates many more long-haul routes than its bigger domestic rival, IndiGo.
Data from Cirium Ascend shows IndiGo, Air India, and its budget unit Air India Express had roughly 1,200 flights combined from New Delhi scheduled for Europe, the Middle East, and North America in April.
Three other people familiar with the matter said the Indian government is considering options to reduce the impact on the airline industry from the closure of Pakistan’s airspace.
One of the sources said Indian carriers met with the Civil Aviation Ministry to work on possible solutions, including flying over difficult terrain closer to China, and some tax exemptions.
In its letter, Air India asked the government to liaise with Chinese authorities for certain overflight clearances, without elaborating.
It also asked the government to approve the carrying of extra pilots on flights to the United States and Canada to account for longer travel times.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.
