Air India has formally requested financial assistance from the Indian government, estimating a potential loss of approximately $600 million over the next 12 months due to Pakistan’s closure of its airspace to Indian carriers.
The airline attributes this substantial financial setback to increased fuel consumption, longer flight durations, and the necessity for additional crew members. In a letter addressed to the Civil Aviation Ministry, Air India detailed that the closure of Pakistan’s airspace has led to rerouted international flights, resulting in higher operational costs. The airline has proposed a “subsidy model” to mitigate these financial challenges, suggesting that such a subsidy would be a fair and verifiable option, to be removed when the situation improves.
The airspace ban has significantly impacted Air India’s international operations, particularly on long-haul routes to Europe, North America, and the Middle East. Flights are now compelled to take longer paths, increasing fuel consumption and extending travel times. This has also led to reduced payload capacities and necessitated adjustments in crew schedules. The Indian government is currently evaluating potential measures to alleviate the financial strain on affected airlines. Discussions are underway regarding possible overflight approvals from China and the implementation of tax exemptions. Additionally, Air India has requested permission to carry extra pilots on longer flights to the United States and Canada to accommodate the extended travel durations.
This development underscores the broader implications of geopolitical tensions on the aviation industry, highlighting the need for strategic planning and international cooperation to ensure the sustainability and efficiency of air travel. As the situation evolves, stakeholders within the aviation sector are closely monitoring the developments, anticipating further discussions and decisions that will shape the future of international air travel in the region.
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