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India-Pakistan Airspace Standoff Drives ₹307 Crore Monthly Losses for Indian Airlines

Air India projects $600 million annual impact, seeks government relief as rerouted flights strain operations and costs escalate.

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Indian airlines are facing additional costs due to having to take alternative routes as Pakistan's airspace is closed to them.

Overview

  • Indian airlines face ₹77 crore in additional weekly operational costs due to rerouted international flights from northern airports.
  • Air India estimates a $600 million annual loss if Pakistan's airspace ban persists and has requested government subsidies to offset the impact.
  • Over 800 weekly international flights from northern India are affected, with rerouting adding up to 1.5 hours of flight time on key routes.
  • IndiGo has canceled flights to Almaty and Tashkent until May 7, citing range limitations caused by the rerouting requirements.
  • Operational challenges include increased fuel burn, payload constraints, extended crew duty times, and logistical disruptions for Indian carriers.