The Indian company faces a loss of 5,000,000 rupees after tensions in India-Pakistan due to…
The company also asked the government to help obtain China's excessive permit and allow additional pilots to fly long distances to North America.
Tensions have risen between India and Pakistan following the deadly terrorist attacks in Pahargam, with both countries taking strong retaliatory actions. India has suspended the Indian Water Treaty, while Pakistan has shut down its space to Indian Airlines, a move that could cost nearly US$600 million (about Rs 5078 crore) if the closure lasts for a year.
According to a Reuters report, Air India has written to the Union Civil Aviation Ministry asking for financial assistance. The airline, owned by the Tata Group, requires subsidies to cover the additional costs of longer flight paths and higher fuel use. In a letter dated April 27, Air India estimated that it lost more than $591 million and said: “Subsidies for affected international flights are a good, verifiable and fair option… when the situation improves, it can be removed.”
The airline said the closure affected its operations the most because its long-distance routes to Europe, the United States and Canada usually pass through Pakistani airspace. Now, the plane may need to fly longer and more difficult routes, possibly near Chinese territory. Air India also asked the government to help obtain China's excessive permit and allow additional pilots to fly long distances to North America.
Several Indian airlines, including Air India, have held meetings with the Ministry of Civil Aviation to discuss solutions, sources told Reuters. These include new flight paths, tax breaks and fuel cost support.
The government has asked airline officials to report on the impact of the airspace ban and is now exploring ways to reduce financial blows to the aviation sector.
Air India accounts for 26.5% of India's civil aviation market, and Boeing and Airbus are already under pressure due to delays in delivery of aircraft. The airline had a net loss of $520 million in 2023-24 and revenue of $4.6 billion.
