NEW DELHI: The closure of Pakistan airspace for Indian airlines after the tension escalated between the two nuclear-armed neighbours in the wake of the Pahalgam incident in Indian Illegally Occupied Jammu and Kashmir (IIOJK) may result in a loss of around $600 million to Air India.
The airline has requested the federal government to compensate it for the hit, a company letter seen by Reuters shows.
On 22 April, gunmen attacked tourists in the Pahalgam area of occupied Kashmir, killing 26 people and injuring 17.
India swiftly blamed Pakistan for the attack without presenting any credible evidence. Pakistan condemned the attack and strongly rejected the Indian government’s baseless accusations.
A day after the Pahalgam incident on 23 April, India’s Cabinet Committee on Security approved measures including the closure of the Wagah-Attari border crossing and the suspension of the Indus Waters Treaty.
In response, Pakistan’s National Security Committee (NSC) met on 24 April and warned that any attempt by India to block water flows into Pakistan would be considered an act of war.
Pakistan on April 24 also closed its airspace to all Indian flights with immediate effect.
According to a NOTAM (Notice to Airmen) issued by the Pakistan Civil Aviation Authority (CAA), Indian-registered civil and military aircraft will not be able to use the country’s airspace until further notice.
“The impact on Air India is maximum due to airspace closure, due to additional fuel burn…additional crew,” said the letter of Air India.
According to a source with direct knowledge of the matter, Air India sent the letter after the government requested its executives to evaluate the impact of the airspace ban on Indian airlines.
Air India, which has a 26.5% market share in India, flies to Europe, the United States, and Canada, often using Pakistan’s airspace.
The airline also sought the government’s approval to carry extra pilots on flights to the United States and Canada due to longer travel times.
According to reports, more than 100 Indian flights use Pakistani airspace daily, including Air India, Air India Express, Aditya Jet, Indigo Air, and Akasa Air, among others.
It is worth mentioning that during the previous airspace closure, Indian airlines incurred losses of approximately $80 million over just a few days, while passengers also faced increased travel costs.
