Air India warns of $ 600 million against banning airspace in Pakistan, and is seeking government support: Report

Air India, which is now owned by Tata Group, estimated a loss of about $ 600 million if the Pakistani airspace remains closed to Indian transport companies for a full year, and urged the central government to provide financial assistance to compensate for the impact.

In a letter dated April 27 to the Ministry of Civil Aviation, the airline asked the “support form” to help expand the strike, with a annual loss of more than 50 billion rupees due to the longest aviation roads and the high fuel consumption, Reuters reported on Thursday.

The airline suggested that “the affected international flight support is a good option and can be checked … support can be removed when the situation improves.”

Air India highlighted that the closure imposes the maximum effect on its operations, especially because of “burning additional fuel … additional crew.” The ministry has not yet responded to this request.

Restriction of airspace comes after India suspended the endoswater Treaty last week in response to a terrorist attack on tourists in Bahama, Kashmir. In revenge, Pakistan prevented Indian Airways from using airspace – a move that forced transport companies to redirect many international flights.

The turmoil is expected to increase the operating costs significantly, while translating longer flying periods to fuel burning and crew expenses. Other Indian transport companies are also preparing for the impact of ripples as the confrontation continues.

Air India has been greatly affected by this airspace, as it runs many long flights to Europe, the United States and Canada, and often crosses the Pakistani airspace. The airline has a 26.5 % market share in India and competes with the largest local competitor.

In 2023-2024, Air India told a net loss of $ 520 million in sales of $ 4.6 billion, which is partially due to delay in Boeing and Airbus aircraft delivery operations. The government is currently studying different options to reduce the financial burden in the aviation industry due to the closure of the airspace.

In response to the closure of the airspace, Air India also requested that the government negotiate with the Chinese authorities for bright permits to use alternative methods. In addition, the airline seeks to agree to carry two additional pilots on its flights to the United States and Canada, which represents the increase in travel periods.

This operational amendment aims to maintain the continuity of the service amid the extended flight tracks. Indian transport companies, including Air India, explore capabilities such as flying on difficult terrain near China and some tax exemptions, as part of a cooperative approach with the Ministry of Civil Aviation.