Air India sees Pakistan airspace prohibiting costing $ 600 million in one year

• Pakistan, India’s tensions that burden the aviation sector.
• The ban on Pakistan’s airspace strikes Indian carriers with longer routes.
• The Tata Indian Airline is already facing losses.

Air India expects to face about $ 600 million at additional expenses, if the ban on Pakistan’s airspace lasts one year and has asked the federal government to offset it for the hit, a letter from the company observed by Reuters shows.

Indian airlines are turning off for higher fuel costs and longer travel times, after Pakistan closed airspace with the country’s carriers in retaliation-tatt-tat after attacking tourists in Indian illegal occupied jam and Kashmir (Iiojk).

Air India on April 27 asked the Indian government for a “subsidy model” analog to economic blow, estimating the loss of more than 50 billion Indian rupees ($ 591 million) for each year the ban lasts, according to a letter sent by the airline. Reuters.

“The subsidy for international flights is a good, verifiable and fair choice … The subsidy can be removed when the situation is improved,” the letter said.

“The impact on Air India is maximum due to the closure of the airspace, due to the additional fuel combustion … additional crew.”

Air India refused to comment. India’s Ministry of Civil Aviation did not immediately respond to request for comments.

Air India’s letter was sent after the government asked its executives to evaluate the impact of the airspace ban on Indian carriers, a source with immediate knowledge of the matter said.

The airline owned by the Tata team is in the middle of a recovery of many billions of dollars after a period of government ownership and growth is already limited by Boeing and Airbus delays. He reported net loss of $ 520 million in tax 2023-2024, with sales of $ 4.6 billion.

Air India, which has a 26.5% market share in India, flies to Europe, the United States and Canada, often crossing Pakistan’s airspace. There is much more long -distance routes than its biggest domestic competition.

Data from Cirium Ascend shows that Indigo, Air India and Air India Express budget unit had about 1,200 flights combined by New Delhi planned for Europe, the Middle East and North America in April.

The Indian government is considering options to reduce the blow in the airline industry from the closure of Pakistan’s airspace, three others were familiar with the issue.

One of the sources said that the Indian carriers met with the Ministry of Civil Aviation to work for possible solutions, including a difficult -ground in difficult territory closer to China and some tax exemptions.

In its letter, Air India asked the government to work with the Chinese authorities for some excessive flight clearances without processing.

He also asked the government to approve the transfer of additional pilots to flights to the United States and Canada to calculate the longer travel times.