New Delhi: Air India is lobbying the Indian government to request Chinese approval for flights over a sensitive military airspace zone in Xinjiang, as the airline faces mounting financial pressures from Pakistan’s closure of its airspace to Indian carriers.
According to Reuters, quoting a company document reviewed by it, the appeal comes just weeks after India-China direct flights resumed following a five-year suspension after the 2020 Himalayan border clash.
Air India, owned by Tata Group and Singapore Airlines, is attempting to rebuild its international network and reputation after the June crash of a London-bound Boeing 787 Dreamliner in Gujarat, which killed 260 people and briefly forced flight suspensions for safety checks.
The Pakistan airspace closure, in place since late April amid diplomatic tensions, has sharply increased fuel costs by up to 29% and extended some long-haul journeys by up to three hours.
The airline estimates the closure has slashed its profit before tax by $455 million annually—a sum higher than its fiscal 2024-25 loss of $439 million.
The document submitted to Indian officials in late October outlines Air India’s request for diplomatic intervention to secure an alternative routing over Hotan, Kashgar, and Urumqi airports in Xinjiang, which would also provide emergency diversion options.
“Air India’s long-haul network is under severe operational and financial strain… Securing Hotan route will be a strategic option,” it states.
The airspace in question is located above some of the world’s highest mountains and falls under China’s People’s Liberation Army Western Theatre Command, which manages both military and civilian operations.
Analysts note that the area poses significant safety risks and has historically been avoided by international carriers.
Global airspace constraints have become more acute amid geopolitical tensions. Since the Ukraine war, U.S. carriers have been banned from flying over Russia, while Pakistan’s closure has forced Air India to suspend its Delhi-Washington route in August.
Routes from Mumbai and Bengaluru to San Francisco are now deemed “unviable” due to extended travel times and mandatory technical stops in Kolkata, according to the document.
The airline estimates that access to the Hotan route could reduce fuel requirements, shorten flight times, restore up to 15% of passenger and cargo capacity on key routes like New York and Vancouver, and cut losses by roughly $1.13 million per week.
Meanwhile, Air India is seeking temporary government subsidies until Pakistan reopens its airspace. The airline is also grappling with $725 million in legacy tax liabilities from before its 2022 sale to Tata Group, which it says is creating additional cashflow pressures despite government indemnity during disinvestment.
Reuters reports that China’s Foreign Ministry has declined comment, referring queries to “relevant authorities,” while Air India and aviation authorities in India, China, and Pakistan did not respond.
