Air India has formally requested financial assistance from the Indian government to offset projected losses of nearly $600 million due to Pakistan’s closure of its airspace. The closure, a retaliatory move following a deadly attack in Kashmir, has forced Indian airlines to reroute international flights, increasing costs and operational strain.
In a letter to the Civil Aviation Ministry, Air India proposed a subsidy model to cover the mounting losses caused by longer flight paths, higher fuel consumption, and additional crew requirements. The Tata-owned carrier, heavily dependent on long-haul routes to Europe, North America, and the Middle East, is the most affected among Indian airlines.
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The disruption arrives at a sensitive time, as Air India undergoes a major restructuring under the Tata Group and grapples with delivery delays from Boeing and Airbus. The government is reportedly considering alternative flight routes, tax exemptions, and potential negotiations with China to ease the burden on airlines.
With a 26.5% share in India’s aviation market and heavy exposure to long-haul travel, Air India’s request underscores the far-reaching impact of regional geopolitical tensions on commercial aviation.
