Pakistan’s Airspace Closure Drains Air India by ₹4,000 Crore Annually
Air India CEO Campbell Wilson has disclosed that the prolonged closure of Pakistani airspace is costing the airline a staggering ₹4,000 crore annually. The disruption, ongoing since 2019 due to geopolitical tensions, forces flights to take longer routes, increasing fuel consumption and financial strain.
Why Pakistan Closed Its Airspace
Pakistan blocked Indian flights in February 2019 after India’s Balakot airstrikes, a response to the Pulwama terror attack. While partial access was restored later, key routes remain shut, forcing Indian carriers to detour—adding up to an hour of extra flight time for Europe, US, and Middle East routes.
How Air India is Losing ₹4,000 Crore
Wilson detailed the losses at an aviation summit:
– Fuel Costs: Longer flights spike fuel expenses (~40% of airline costs).
– Lower Efficiency: More airtime reduces daily flight rotations and raises maintenance costs.
– Passenger Discontent: Extended travel times harm customer satisfaction.
Other Airlines Affected
While Air India suffers the most due to its long-haul operations, IndiGo and Vistara face similar issues. International carriers like British Airways and Emirates also reroute but absorb losses better via global networks.
Diplomatic Deadlock Deepens Losses
Despite appeals, Pakistan shows no signs of reopening airspace fully. Experts say: “This is a geopolitical issue—losses won’t stop without dialogue.”
Air India’s Countermeasures
To curb losses, Air India is:
– Optimizing routes with advanced navigation.
– Hedging fuel prices to combat volatility.
– Upgrading fleets with fuel-efficient Boeing 787s & Airbus A350s.
Yet, Wilson stressed: “Only normalized airspace access can fully resolve this.”
Broader Toll on Indian Aviation
The crisis hits as airlines recover from pandemic losses. Rising fuel prices and inflation, compounded by rerouting costs, threaten fare hikes and could delay India’s aviation hub ambitions.
What’s Next?
With no quick fix, airlines must adapt. For Air India—now under Tata Group—the ₹4,000-crore blow complicates its revival. Until diplomacy eases, South Asia’s skies will remain restricted.
