Air India is experiencing increasing operational and financial challenges following the closure of Pakistan's airspace to Indian airlines in late April. 

 

 

Documents obtained by an international news agency indicate that the airline has requested the Indian government to secure alternative routing through China's Xinjiang region to mitigate losses.

 

 

The closure has compelled Air India to redirect long-haul flights, resulting in longer travel times and higher fuel consumption. 

 

 

Some westbound detours have extended flight durations by up to three hours, causing fuel expenses to rise by as much as 29 percent. Flights from Mumbai and Bengaluru to San Francisco are some of the most significantly impacted. Under the present restrictions, Air India deems these routes unviable, while data reveals a trend of passengers opting for foreign airlines that still utilize Pakistan’s airspace.

 

 

The airline anticipates that the airspace closure could lower its annual pre-tax profit by around $455 million. This amount surpasses the carrier’s reported loss of $439 million for the financial year 2024-25. 

 

 

Air India has urged the government to investigate possible routing over Hotan, Kashgar, and Urumqi in Xinjiang. The airline's internal analysis suggests that utilizing these corridors would decrease fuel consumption, regain roughly 15 percent of lost passenger and cargo capacity, and diminish weekly losses by about $1.13 million.

 

 

Additionally, Air India has requested temporary financial aid from the government until Pakistan opens its airspace again. 

 

 

The strain on cash flow has intensified due to outstanding tax liabilities totaling $725 million. This amount includes recovery notices amounting to $58 million, despite guarantees that were established when the airline transitioned to the Tata Group in 2022.

 

 

Gaining access to Chinese airspace remains uncertain. The suggested route traverses challenging high-altitude terrains and falls within the jurisdiction of China’s Western Theatre Command. 

 

The area accommodates significant military installations, and there have been no recent operations by non-Chinese airlines at Hotan. Aviation experts quoted in the news report suggest that obtaining approvals for the requested flight paths is improbable due to concerns related to terrain and security.

 

 

This appeal coincides with the recent resumption of direct flights between India and China. Services restarted after a five-year hiatus that followed heightened tensions along the Himalayan border. 

 

 

Air India has been striving to revive its international services and stabilize its schedule after a June incident involving a Boeing 787 Dreamliner in Gujarat, which led to the temporary suspension of multiple flights for inspections.