Air India has approached the Indian government requesting financial assistance to counter expected losses of nearly $600 million if the current ban on flying through Pakistan’s airspace continues for a year. In a letter dated April 27 to the Civil Aviation Ministry, the airline proposed a “subsidy model” to offset the impact, estimating an annual loss of over $591 million from rerouted international operations.
Reason Behind the Ban and Airline Impact
The airspace ban follows Pakistan’s retaliatory move after a deadly terror attack on tourists in Kashmir’s Pahalgam. The restriction has forced Indian airlines to reroute flights, leading to higher fuel consumption and extended flight durations. Air India, which operates more long-haul routes than most domestic carriers, expects to bear the brunt of this disruption due to increased fuel burn and the need for extra crew.
Government Explores Relief Measures
Following Air India’s letter, the Civil Aviation Ministry is assessing the broader industry impact and considering possible remedies. These include negotiating new overflight clearances with China, offering tax exemptions, and exploring alternate routes over difficult terrain. Airlines have also asked for permission to carry extra pilots on U.S. and Canada-bound flights to manage the longer travel time.
Air India’s Request to Government
In its communication, Air India urged the government to engage with Chinese authorities to secure alternative air routes and emphasized that a verifiable subsidy for affected flights is a fair interim solution. The airline suggested removing the subsidy once the situation returns to normal.
Ongoing Financial Struggles and Fleet Delays
Air India, now under the Tata Group, is in the middle of a multi-billion dollar turnaround after years of government ownership. The airline reported a net loss of $520 million for the fiscal year 2023–24, with revenues of $4.6 billion. Its growth has been hampered by aircraft delivery delays from Boeing and Airbus.
Air India’s International Network and Market Position
With a 26.5% share of the Indian aviation market, Air India operates several long-haul international routes to Europe, the U.S., and Canada—many of which rely on routes through Pakistan’s airspace. The airline, along with its budget wing Air India Express and rival IndiGo, had around 1,200 flights scheduled from Delhi to destinations in Europe, the Middle East, and North America during April, according to Cirium Ascend data.
പാകിസ്താൻ വ്യോമാതിർത്തി അടച്ചത് ഒരു വർഷത്തേക്ക് നീണ്ടുനിന്നാൽ എയർ ഇന്ത്യയ്ക്ക് ഏകദേശം 600 മില്യൺ ഡോളർ അധിക ചിലവ് വരുമെന്ന് റിപ്പോർട്ട്. ഇതിൽ നഷ്ടപരിഹാരം നൽകണമെന്ന് ആവശ്യപ്പെട്ട് എയർ ഇന്ത്യ കേന്ദ്ര ഗവൺമെന്റിനെ സമീപിച്ചു. നിരോധനം നിലനിൽക്കുന്ന ഓരോ വർഷവും 591 മില്യൺ ഡോളറിലധികം നഷ്ടം കണക്കാക്കുന്നതായും സാമ്പത്തിക ആഘാതത്തിന് ആനുപാതികമായി “സബ്‌സിഡി മോഡൽ” ആവശ്യപ്പെട്ടുമാണ് എയർ ഇന്ത്യ വ്യോമയാന മന്ത്രാലയത്തിന് കത്തയച്ചത്.
