Pakistan Faces Multi Million Dollar Loss from Airspace Ban
Pakistan’s recent decision to close its airspace to Indian airlines following the Pahalgam terror attack has significant implications for both nations’ aviation sectors. While the move was intended to disrupt India’s aviation operations, it is expected to result in substantial financial losses for Pakistan’s aviation industry.​
The closure of airspace has reduced overflight fees, a crucial source of income for Pakistan’s Civil Aviation Authority (CAA). Previously, airlines paid substantial fees to use Pakistani airspace. For instance, a Boeing 737 flying over Pakistan would incur approximately $580 in overflight fees. With the closure, these revenues have been eliminated, leading to significant financial losses.​ In addition to the loss of overflight fees, Pakistan International Airlines (PIA) faces challenges due to the suspension of international routes and longer flight durations on domestic routes. These factors contribute to increased operational costs and reduced revenue for PIA.​
Indian airlines, including Air India and IndiGo, have been forced to reroute flights to avoid Pakistani airspace. This detour adds approximately 2 to 2.5 hours to flight times, leading to higher fuel consumption and increased operational costs. For example, flights from cities like Delhi, Amritsar, Jaipur, Lucknow, and Varanasi are now taking longer routes over the Arabian Sea instead of flying over Pakistan.​ This is not the first instance of Pakistan’s airspace closure impacting aviation revenue. In July 2019, following the Pulwama terror attack, Pakistan closed its airspace, resulting in daily losses of approximately $760,000 for the CAA and PIA. The cumulative loss during that period was nearly $100 million. The current situation is expected to mirror these financial challenges.​
The closure of Pakistan’s airspace to Indian airlines has far-reaching implications for both countries’ aviation sectors. While intended to disrupt India’s operations, the move is anticipated to result in significant financial losses for Pakistan’s aviation industry. The situation underscores the complex interplay between geopolitical tensions and economic consequences in the global aviation landscape.
