Grounded Gains: How Pakistan’s Airspace Ban is Costing Indian Carriers Millions

Key Highlights:

$600M Annual Impact: Air India estimates $600 million in extra expense if Pakistan's airspace is not opened for one year, seeking a plea to the government for financial support.

Industry-Wide Strain: Other airlines such as IndiGo and SpiceJet also made inputs to the civil aviation ministry, mentioning rerouting issues, added fuel expenses, and longer flying times for foreign routes.

Passenger Impact: Airfares could increase 8–12% on impacted routes as operational expenses rise, with flights originating from North Indian cities incurring Rs 77 crore per week in extra costs.

Mitigation Measures: Air India is exploring new routes around China and applying for additional crew on long-haul flights to counter delays.

Government Response: The civil aviation ministry is weighing solutions, including possible subsidies, as the DGCA ordered airlines to improve passenger communication, catering, and medical assistance during long-haul flights.

The shut-down, sparked by the April 22 terror attack in Pahalgam, has disrupted more than 800 weekly flights disproportionately impacting Air India's North America and European routes. Foreign carriers that continue to use Pakistani airspace may have a competitive advantage, compounding Indian airlines' woes with increasing costs.

Sources: Business Standard, India Today, Al Jazeera