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Air India, now owned by the Tata Group, has estimated a loss of almost $ 600 million if Pakistan’s airspace remains closed to Indian carriers for a full year, and has urged the central government to provide financial assistance to compensate for the impact.
In a letter dated April 27, addressed to the Ministry of Civil Aviation, the airline requested a “subsidy model” to help cushion the coup, projecting an annual loss of more than 50 billion rupees due to longer flight routes and a higher fuel consumption, the Reuters news agency reported Thursday.
The airline suggested that “the subsidy for affected international flights is a good, verifiable and fair option … the subsidy can be eliminated when the situation improves.”
Air India stressed that the closure imposes the maximum impact on its operations, particularly due to “additional fuel burn … additional crew.” The Ministry has not yet responded to this application.
The restriction of airspace occurs after India suspended the Treaty of Indo’s waters last week in response to a terrorist attack against tourists in the Pehalgama de Cashmiro. In retaliation, Pakistan prohibited Indian Airlines from using their airspace, a movement that has forced carriers to redirect several international flights.
The interruption is expected to increase significantly the operating costs, with a longer flight duration that translates into more fuel burns and added crew expenses. Other Indian operators are also preparing for a domino effect as the confrontation continues.
Air India has been significantly affected by this prohibition of airspace, since it operates numerous long -distance flights to Europe, the United States and Canada, which frequently crosses the Pakistaní airspace. The airline has a market share of 26.5% in India and competes with a larger national indigo.
In 2023-2024, Air India reported a net loss of $ 520 million in sales of $ 4.6 billion, partly attributed to delays in Boeing and Airbus aircraft deliveries. Currently, the government is considering several options to relieve financial load in the airline industry due to the closure of airspace.
In response to the closure of airspace, Air India has also requested that the Government negotiate with Chinese authorities by oversized authorizations to use alternative routes. In addition, the airline seeks approval to transport additional pilots on its flights to the United States and Canada, which represents the increase in travel duration.
This operational adjustment aims to maintain the continuity of the service in extended flight routes. Indian carriers, including Air India, are exploring possibilities such as flying on challenging land near China and some tax exemptions, as part of a collaborative approach to the Ministry of Civil Aviation.
