AI flights from south India to UK, Europe, US unaffected: Airspace ban to cost AI $600m, seeks govt aid

NEW DELHI May 2: The closure of Pakistan’s airspace is expected to result in a loss of around $600 million for Air India over the next year, according to a Reuters report citing a letter from the airline. In the letter, Air India urged the government to provide compensation for the financial impact of the ban.

Indian airlines, including Air India, are bracing for higher fuel costs and longer flight durations after Pakistan’s decision to close its airspace to Indian carriers. This move was reportedly a retaliatory measure following an attack on tourists in Pahalgam last week.

On April 27, Air India formally requested that the government introduce a “subsidy model” to offset the economic impact caused by the airspace closure. The airline estimated its losses could surpass 50 billion rupees (approximately $591 million) for each year the ban remains in effect.

In its letter to the civil aviation ministry, Air India proposed that subsidies for affected international flights would be a fair and verifiable solution, suggesting they could be removed when the situation improves. The airline explained that its losses were compounded by additional fuel consumption and the need for more crew due to the rerouting of flights.

While Air India declined to comment on the matter, the civil aviation ministry did not immediately respond to a request for feedback.

According to Reuters, the airline’s request was made after the government instructed Air India to assess the financial implications of the airspace ban on Indian carriers.

Airspace closure to hit Pakistan hard; northern routes to be affected

Pakistan’s decision to block Indian airlines from using their airspace will have a limited impact on its southern and western flight operations but will significantly affect northern routes, particularly from New Delhi, according to Air Marshal (Retd) Sanjeev Kapoor.

However, Kapoor said India’s decision to close its airspace to Pakistan’s airlines in the wake of the April 22 Pahalgam terror attack is expected to severely disrupt Pakistan International Airlines (PIA) operations, increasing flight times and costs.

In a self-made video, Marshal Kapoor explained, “Our flights operating from North India, international flights, especially from Delhi, get affected because we have to go to Gujarat and thereafter follow the westbound route over the Arabian Sea into the UAE and then further on. However, international flights operate south of Gujarat, specifically from Mumbai and Ahmedabad. Bangalore, Hyderabad, and Chennai – they are not affected at all.”

“So there is not much implication for any of the flights operating from the southern Peninsula in our country except for flights operating out of the Delhi area for us,” he added.

For Pakistan, however, the implications are far-reaching. Kapoor noted that tactical factors, such as longer routes due to the airspace closure, will cause higher fuel consumption, delayed schedules, and reduced aircraft utilisation, significantly denting PIA’s operating costs.

“The flights originating from Islamabad to Kuala Lumpur of Pakistan International Airlines, which generally take about 5 hours 30 minutes, will now take 8 hours 30 minutes… Any aircraft originating from Pakistan that needs to travel to, say, Bangladesh or Sri Lanka will have to take a longer route over the sea… This will lead to increased flying time, increased operating costs, and increased tickets (prices). This will lead to increased turnaround times and a shortage of aircrew. The same aeroplane will have to be rotated back, which will be further delayed… This will lead to less utilisation of these aeroplanes,” he added.

Earlier on Wednesday, India closed its airspace to all aircraft registered in Pakistan and those operated by Pakistani airlines, according to the Ministry of Civil Aviation (MoCA).

India issued a Notice to Airmen (NOTAM) confirming the closure of its airspace to all Pakistani-registered, operated, or leased aircraft, including military flights, from April 30 to May 23 (estimated duration).

Both India and Pakistan have now blocked each other’s airlines from using their airspace, as the neighbouring country had already announced this step six days ago in the wake of the terror attack in Pahalgam that claimed the lives of 26 people.

Air India, now owned by the Tata Group, is undergoing a multi-billion-dollar turnaround after years of government ownership. However, the airline’s growth has been hampered by delays in aircraft deliveries from Boeing and Airbus.

For fiscal 2023-2024, Air India reported a net loss of $520 million on sales of $4.6 billion. With a 26.5% market share in India, the airline operates many long-haul international routes, including flights to Europe, the United States, and Canada, often passing through Pakistani airspace.

Data from Cirium Ascend, also cited by Reuters, revealed that in April, Air India, its budget unit Air India Express, and IndiGo collectively had about 1,200 flights scheduled from New Delhi to Europe, the Middle East, and North America.

The government is reportedly exploring options to mitigate the economic fallout from Pakistan’s airspace closure on the Indian airline industry, according to three sources familiar with the matter, Reuters reported.