Air India has warned the Indian government that the ongoing closure of Pakistan’s airspace could cost the airline approximately $600 million over the course of a year and has requested financial support to mitigate the impact, according to a letter seen by Reuters.
Following a recent attack on tourists in Kashmir, Pakistan closed its airspace to Indian carriers in a retaliatory move, forcing airlines like Air India to take longer, fuel-intensive routes. This has resulted in increased operational costs and extended flight durations.
In a letter dated April 27, Air India urged the Civil Aviation Ministry to introduce a subsidy model to cover the losses, estimating an annual financial hit exceeding ?50 billion ($591 million). The airline emphasized that the subsidy could be phased out once the situation normalizes.
Air India highlighted that it is particularly affected due to its extensive international operations, which now face additional fuel costs, longer flight times, and the need for extra crew. The airline, currently owned by Tata Group, is undergoing a multi-billion-dollar transformation and recently reported a $520 million net loss for the 2023-24 fiscal year on $4.6 billion in revenue.
Neither Air India nor the Civil Aviation Ministry provided immediate comments on the matter. However, sources confirmed that the government had requested Indian airlines to evaluate the impact, and discussions are ongoing about relief measures.
Air India, which controls 26.5% of the Indian aviation market, frequently flies to North America and Europe through Pakistani airspace. In April alone, Air India, IndiGo, and Air India Express scheduled around 1,200 international flights from New Delhi.
To cope with the disruption, the airline has also requested the government to engage with China for alternative overflight permissions and sought approval to carry extra pilots on longer routes to the U.S. and Canada.
