Air India has formally requested the Indian government for a compensation package amounting to ₹5,029.2 crore, attributing the financial strain to Pakistan’s ongoing airspace ban on Indian carriers.
The ban, imposed following heightened tensions after the Pahalgam attack in April 2025, has significantly disrupted Air India’s international operations.​ The airline’s letter to the Ministry of Civil Aviation, dated April 27, 2025, outlines the substantial economic impact of the airspace closure. Air India estimates an annual loss of over ₹5,029.2 crore if the ban persists, primarily due to increased fuel consumption, extended flight durations, and the necessity for additional crew members. The airline’s extensive international network, particularly its long-haul routes to Europe, North America, and the Middle East, has been disproportionately affected.​
The rerouting of flights has led to delays and increased operational costs. For instance, flights from New Delhi to the Middle East now take approximately an hour longer, reducing cargo capacity and escalating fuel expenses, which constitute about 30% of an airline’s operating costs. Ultra-long-haul flights to North America have been compelled to make technical stops in European cities like Copenhagen and Vienna for refueling or crew changes, disrupting non-stop schedules.​ In response to the operational challenges, India’s aviation regulator has granted Air India a temporary exemption to extend maximum duty hours and rest periods for pilots and cabin crew operating long-haul flights, particularly to U.S. destinations. This measure, effective from April 30 for approximately two weeks, aims to mitigate operational disruptions caused by the airspace blockade. The exemption applies to both Airbus and Boeing long-haul fleets, increasing the flight duty period by two hours—allowing up to 16 hours for flights under 12 hours and up to 24 hours for flights over 14 hours. Corresponding rest periods at layovers and home bases have also been extended.​
The Indian government is actively exploring solutions to alleviate the aviation sector’s burden. Sources indicate that Indian carriers, including Air India, met with the Civil Aviation Ministry to discuss alternatives, such as rerouting flights over challenging terrain near China and implementing tax exemptions. Air India’s letter specifically requested government assistance in securing overflight clearances from Chinese authorities, though details remain undisclosed. Additionally, Air India proposed carrying extra pilots on flights to the United States and Canada to manage longer travel times, seeking government approval for this measure.​ This situation mirrors earlier disruptions when airspace restrictions occurred after geopolitical events, such as Russia’s closure of its airspace in 2022. Airlines emphasize that safety remains a top priority amid the inconvenience caused by these necessary operational changes.​
As the geopolitical landscape continues to evolve, the aviation industry remains vigilant, adapting to challenges and seeking collaborative solutions to ensure the safety and efficiency of international air travel.
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