Sky High Savings: Air India Charts Mongolian Course to Outsmart Airspace Ban

Unknown Apr 02, 2026 850 Views

Air India recently made a major operational change to offset the steep costs resulting from the closure of Pakistan's airspace. The airline has initiated flying some North America-bound flights through Mongolian airspace, a tactical decision meant to save fuel, technical stopovers, and overal...

After Pakistan's recent geopolitical tensions closed its airspace to Indian carriers, Air India has been confronted with higher operational expenses and logistical challenges on its direct flights from Delhi to the US and Canada. In response to these challenges, the airline is now employing Mongolian airspace for some flights, as well as domestic technical stops to further streamline costs and efficiency.

Background: Airspace Closure and Its Impact

Pakistan had closed its airspace to Indian carriers on April 24, 2025, as a retaliatory action after the Pahalgam terror attack.
The shutdown compelled Air India to adopt longer west-bound routes, resulting in greater fuel burn, longer flight times, and increased operating expenses.
Technical stops in European capitals such as Vienna and Copenhagen were required for refueling and crew changes, entailing additional costs.

Operational Changes by Air India

Air India has begun diverting some North America-bound flights over Mongolian airspace to counter rising costs and decrease dependence on costly European stopovers.
The carrier is also considering technical stops inside India, for example, in Mumbai or Ahmedabad, to further cut costs and enhance crew management.
These are part of a larger push to reinstate more non-stop flights and cut the number of overseas technical stops.

Financial and Logistical Implications

The airspace shutdown has led to an estimated incremental cost of about USD 600 million every year for Air India if the curbs continue.
Every North America flight now takes around 1.5 hours longer, adding about ₹29 lakh per flight because of additional fuel burn and landing/parking fees.
Air India conducts 71 weekly flights to North America, with 54 originating from Delhi and connecting to key cities such as Chicago, New York, Washington, San Francisco, Newark, Toronto, and Vancouver.

Future Outlook

Management of Air India, headed by MD and CEO Campbell Wilson, is hopeful to cut overseas tech-stops and restore more direct flights as alternative routes are followed.

The airline continues to monitor the situation and adapt its network strategy to maintain service efficiency despite ongoing airspace restrictions.

Sources: AviationA2Z, Economic Times, Business Standard

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