- Saturday, May 03, 2025
Indian airlines are bracing for higher fuel costs and longer journey times, especially for international flights originating from Delhi airport
By: India Weekly
WITH Pakistan having shut its airspace to Indian carriers a few days after the April 22 Pahalgam terror attack, Air India claims it could face around $600 million in additional costs if the ban lasts for a year.
Indian airlines are bracing for higher fuel costs and longer journey times, especially for flights originating from Delhi airport and other airports in north India.
Airlines use Pakistani airspace to fly to the Gulf countries, North America (USA & Canada), and Europe.
Following the airspace closure, Air India has added fuel stops at Vienna and Copenhagen for many of its North America flights.
Air India operates 71 flights a week to North American destinations, and out of them, 54 services are from Delhi.
The airline flies to Chicago, New York, Washington, San Francisco, and Newark in the US, and to Toronto and Vancouver in Canada.
Data from Cirium Ascend showed IndiGo, Air India and its budget unit Air India Express have roughly 1,200 flights combined from New Delhi scheduled for Europe, the Gulf countries and North America in April.
Air India has asked the federal government to compensate it for the hit, a company letter seen by Reuters shows.
The Tata Group-owned airline on April 27 asked the Indian government for a “subsidy model” proportionate to the economic hit, estimating a loss of more than ₹50 billion ($591 million) for each year.
“Subsidy for affected international flights is a good, verifiable and fair option … the subsidy can be removed when the situation improves,” the letter said.
“The impact on Air India is maximum due to airspace closure, due to additional fuel burn…additional crew.”
Air India declined to comment. India’s Civil Aviation Ministry did not immediately respond to a request for comment.
The letter was sent after the government asked its executives to assess the impact of the airspace ban on Indian carriers.
Civil aviation minister K Rammohan Naidu had on Wednesday (28) said the ministry was assessing the situation and working with airlines for solutions.
IndiGo and SpiceJet have also given their inputs and suggestions to the civil aviation ministry.
Air India is in the midst of a multi-billion dollar revamp after a long period of government ownership, and growth is already constrained by jet delivery delays from Boeing and Airbus.
It reported a net loss of $520 million in fiscal 2023-2024, on sales of $4.6 billion.
Air India, which has a 26.5 per cent market share in India, flies to Europe, the United States and Canada, often crossing Pakistan’s airspace.
It operates many more long-haul routes than its bigger domestic rival IndiGo.
IndiGo has temporarily canceled flights to Almaty and Tashkent due to aircraft operational range constraints.
The Indian government is considering options to reduce the hit to the airline industry from the closure of Pakistan’s airspace.
Aspects related to airlines and passengers, including a possible increase in airfares due to higher operational costs, are being assessed.
The representatives of Indian carriers met with the Civil Aviation Ministry to work on possible solutions, including flying over difficult terrain closer to China, and some tax exemptions.
In its letter, Air India asked the government to liaise with Chinese authorities for certain overflight clearances, without elaborating.
It also asked the government to approve the carrying of extra pilots on flights on the United States and Canada to account for longer travel times.
On Wednesday (30), India also closed its airspace for flights operated by Pakistani airlines.
There are no direct flights between the two countries, but Pakistani airlines use Indian airspace for their flights to Singapore, Malaysia and other East Asian countries. (Agencies)
