- Pakistan, India tensions with ravages in the aviation sector.
- The prohibition of Pakistan airspace strikes Indian carriers with longer routes.
- The Indian airline belonging to Tata has already undergone operational losses.
Air India plans to cope with around $ 600 million in additional costs if a ban on Pakistan airspace lasts a year and asked the federal government to compensate it, a business letter seen by Reuters shows.
Indian airlines are preparing for higher fuel costs and longer journeys after Pakistan closed its airspace to the country’s carriers during a reprisals in Tit-For-Tat following an attack on tourists in Jammu-et-Cachemire occupied by illegally Indian (IIOJK) last week.
Air India on April 27 asked the Indian government a “subsidy model” proportionate to the economic blow, estimating a loss of more than 50 billion Indian rupees ($ 591 million) for each year that the prohibition lasts, according to a letter sent by the airline to the Ministry of Civil Aviation seen by Reuters.
“The grant for affected international flights is a good verifiable and fair option … The grant can be deleted when the situation improves,” said the letter.
“The impact on Air India is maximum due to the closure of the airspace, due to an additional fuel burn … additional crew.”
Air India refused to comment. The Civil Aviation Ministry of India did not immediately respond to a request for comments.
The Air India letter was sent after the government asked its managers to assess the impact of the prohibition on airspace on Indian carriers, said a source of direct knowledge of the issue.
The airline belonging to a Tata group is in the middle of a reversal of several billion dollars after a period of ownership of the government, and growth is already limited by the delivery delays of Jet of Boeing and Airbus. He declared a net loss of $ 520 million during the year 2023-2024, on sales of $ 4.6 billion.
Air India, which has a market share of 26.5% in India, flies to Europe, the United States and Canada, often crossing Pakistan airspace. It uses many more long-haul roads than its largest indigo domestic rival.
Cirium Ascend data show that Indigo, Air India and its Air India Express budgetary unit had around 1,200 flights combined from New Delhi provided for Europe, the Middle East and North America in April.
The Indian government is considering options to reduce the air transport industry to closure of Pakistan airspace, three other families with the case said.
One of the sources said that Indian carriers had met the Ministry of Civil Aviation to work on possible solutions, especially on difficult grounds closer to China, and certain tax exemptions.
In his letter, Air India asked the government of liaison with the Chinese authorities for certain flight clearances, without developing.
He also asked the government to approve the transport of additional flights to flights to the United States and Canada to account for longer journeys.