Pak airspace ban costs Air India Rs8.2b
Pakistan Air Force J-10C fighter jets perform at a rehearsal ahead of Pakistan's national day parade in Islamabad on March 21, 2024. (Photo by Aamir QURESHI / AFP via Getty Images) AAMIR QURESHI
As the airspace ban Pakistan slapped on Indian carriers drags on for forty days, the cost for Air India is turning from heavy to near-unsustainable, aviation sources said on Wednesday.
The Indian national carrier has already taken a hit of over Rs8.2 billion since the closure began.
According to well-placed aviation insiders, Air India is bleeding approximately Rs200 million each day due to longer alternate routes, increased fuel consumption and delays triggered by the airspace detour.
In a sign of rising frustration, Air India's Chief Executive Officer Campbell Wilson has formally written to the Indian government, highlighting the scale of financial damage.
In the letter, Wilson reportedly warned that continued restrictions could render airline operations unsustainable if not addressed soon.
According to The Economic Times, an internal presentation showed that Air India had, late last year, set a target to become profitable by FY 27. However, the closure of Pakistani airspace for Indian carriers is likely to delay that.
"It will still take a little bit more time to achieve what we want to achieve, but it was a five-year project in the beginning," Wilson said in the interview to the Economic Times, referring to the five-year transformation plan 'Vihaan' announced in September 2022.
"The closure of Pakistani airspace, which started on April 24, has forced Air India's flights to North America to take detours and stop in Vienna or Copenhagen to refuel, leading to increased expenses," the report noted.
"It's not insignificant, but as long as it covers the cost of operation, we will continue to operate," Wilson said. "We don't know the extent to which the bottom line is going to be affected. We will try to minimise the effect."
The CEO's concerns are not limited to Air India alone. Other Indian carriers have also reportedly suffered billions of rupees in cumulative losses, though precise estimates remain undisclosed.
"This isn't just turbulence, it's a full-blown storm for Indian aviation," a senior aviation official remarked, noting that the 40-day closure has upended flight logistics, increased operational costs, and complicated international schedules for Indian carriers.
The airspace restrictions, which came into effect in the wake of heightened diplomatic tensions, have now completed 40 days, with no breakthrough in sight. For airlines forced to circumvent Pakistani airspace, the sky is not only the limit but also a costly detour.
As the ban continues, industry experts warn that Indian carriers might soon be compelled to cut routes or hike fares, passing the burden onto passengers, unless diplomatic channels find a way to clear the air.
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