{"id":92939,"date":"2025-05-02T12:53:51","date_gmt":"2025-05-02T07:23:51","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=92939"},"modified":"2025-05-13T22:14:00","modified_gmt":"2025-05-13T16:44:00","slug":"air-india-seeks-rs-5000-cr-compensation-amid-pakistan-airspace-ban","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2025\/05\/02\/air-india-seeks-rs-5000-cr-compensation-amid-pakistan-airspace-ban\/","title":{"rendered":"Air India Seeks Rs.5,000 Cr Subsidy Amid Pakistan Airspace Ban"},"content":{"rendered":"\n

GURUGRAM-<\/strong> Air India (AI)<\/a> could incur additional costs of approximately 5,029.2 Cr INR over the next 12 months due to Pakistan\u2019s continued ban on Indian carriers using its airspace, requesting a subsidy from the Indian government.<\/p>\n\n\n\n

The ban, imposed after India suspended the Indus Waters Treaty in response to a deadly attack on tourists in Pahalgam, Kashmir, has forced Indian airlines to reroute international flights, impacting major hubs like New Delhi (DEL)<\/a> and destinations across Europe and North America.<\/p>\n\n\n\n

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Photo: Utkarsh Thakkar (Vimanspotter)<\/figcaption><\/figure>\n\n\n\n

Air India Seeks Rs. 5,000 Cr Subsidy<\/h2>\n\n\n\n

Pakistan\u2019s decision to close its airspace to Indian carriers, including Air India (AI), stems from heightened tensions following a deadly attack on tourists in Kashmir\u2019s Pahalgam on April 22, 2025. <\/p>\n\n\n\n

The ban, effective immediately, forces airlines to reroute flights, significantly impacting Air India\u2019s long-haul operations to Europe, the United States, and Canada. <\/p>\n\n\n\n

According to Reuters, Air India estimates an annual loss of over \u20b95,029.2 crore ($600 million) if the ban persists for a year, driven by increased fuel consumption and extended flight times, and requests a subsidy.<\/p>\n\n\n\n

The airline\u2019s letter to the Civil Aviation Ministry<\/a>, dated April 27, 2025, highlights the disproportionate impact on Air India due to its extensive international network.<\/p>\n\n\n\n

The letter notes, \u201cThe impact on Air India is maximum due to airspace closure, due to additional fuel burn…additional crew.\u201d <\/p>\n\n\n\n

This closure disrupts approximately 1,200 flights from New Delhi (DEL) to Europe, the Middle East, and North America in April alone, operated by Air India, its budget unit Air India Express, and rival IndiGo (6E)<\/a>.<\/p>\n\n\n\n

Air India, holding a 26.5% market share in India, operates more long-haul routes than IndiGo, making it particularly vulnerable. <\/p>\n\n\n\n

The Tata Group-owned carrier, already navigating a multi-billion-rupee turnaround, reported a net loss of \u20b94,358.64 crore in fiscal 2023-2024 on sales of \u20b9385,572 crore.<\/p>\n\n\n\n

Jet delivery delays from Boeing and Airbus further constrain its growth, compounding the financial strain from the airspace ban.<\/p>\n\n\n\n

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Photo: Mumbai Planes | Siddh Dhuri<\/figcaption><\/figure>\n\n\n\n

Government Response<\/h2>\n\n\n\n

The Indian government is actively exploring solutions to alleviate the aviation sector\u2019s burden. <\/p>\n\n\n\n

Sources indicate that Indian carriers, including Air India (AI), met with the Civil Aviation Ministry to discuss alternatives, such as rerouting flights over challenging terrain near China and implementing tax exemptions. <\/p>\n\n\n\n

Air India\u2019s letter specifically requested government assistance in securing overflight clearances from Chinese authorities, though details remain undisclosed.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

The government\u2019s proactive engagement follows its request for airlines to assess the ban\u2019s impact, with Civil Aviation Minister K Ram Mohan Naidu emphasizing minimal disruption for passengers.<\/p>\n\n\n\n

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Photo: By lasta29 – Air India, B787-8 Dreamliner, VT-ANR, CC BY 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=40687689<\/figcaption><\/figure>\n\n\n\n

Past Precedents<\/h2>\n\n\n\n

The airspace closure forces Air India (AI) to reroute flights, adding 15 minutes to several hours to journey times, depending on the destination. <\/p>\n\n\n\n

For instance, flights from New Delhi (DEL) to the Middle East now take about an hour longer, reducing cargo capacity and increasing fuel costs, which account for roughly 30% of an airline\u2019s operating expenses. <\/p>\n\n\n\n

Ultra-long-haul flights to North America have resorted to technical halts in European airports like Copenhagen and Vienna for refueling or crew changes, disrupting non-stop schedules.<\/p>\n\n\n\n

This is not the first time Pakistan has imposed such a ban. In 2019, following the Balakot airstrikes, a five-month airspace closure cost Indian airlines, including Air India, approximately \u20b9536.45 crore at current rates. <\/p>\n\n\n\n

Air India bore the brunt due to its extensive westbound routes. The current ban, set to last until at least May 23, 2025, could lead to similar or greater losses if prolonged.<\/p>\n\n\n\n

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Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

Recovery Challenges<\/h4>\n\n\n\n

This development comes as Air India is navigating a multi-billion-rupee restructuring plan after decades of state ownership.<\/p>\n\n\n\n

The airline’s efforts to modernize its fleet have already been hampered by delivery delays from Boeing and Airbus, limiting its capacity to expand and adapt to changing route demands.<\/p>\n\n\n\n

While the Indian Civil Aviation Ministry has yet to issue an official response, reports suggest policymakers are exploring all possible avenues to cushion the economic blow. The long-term success of these efforts will hinge on diplomatic progress and operational flexibility.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

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Air India Using Mongolian Airspace for the US and Canada Flights<\/a><\/blockquote>