Air India Seeks Government Compensation Amid Soaring Losses from Pakistan Airspace Closure
Air India has officially contacted the Indian government at the central level, demanding financial reimbursement against considerable losses to their business arising out of continuous closure of its airspace by Pakistan for Indian airplanes. As reported by Reuters, the national airline filed a letter setting out estimated damages, suggesting that if not eased, these restrictions would be running up more than INR 50 billion (USD 590 million) of losses yearly.
In its appeal, Air India has suggested a “subsidy model” tied to the financial loss resulting from the shutdown. The airline underlined that the aid should continue only during the period of the airspace shutdown, underscoring that it is not asking for open-ended help but calculated relief commensurate with the existing geopolitical shock.
The airspace closure, imposed by Pakistan on April 24, 2025, has forced Air India to reroute many of its long-haul flights—particularly those to Europe and North America—through alternative corridors, significantly increasing flight durations, fuel costs, and operational complexity. To manage the extended flight times, the airline has had to introduce additional fuel stops, notably at Copenhagen Kastrup and Vienna airports, for routes that would otherwise pass through Pakistani airspace.
Flights to Vancouver and San Francisco remain unaffected as they follow Pacific routes, bypassing Pakistani airspace entirely. However, most other transcontinental flights have become logistically and economically challenging. The airline pointed out that besides the rising fuel expenses, the rerouted flights also require longer crew duty hours, additional rest periods, and in some cases, more flight crew on board—further pushing up operational costs.
As a short-term relief measure, the Directorate General of Civil Aviation (DGCA) has temporarily relaxed pilot duty regulations for Air India. According to an internal memo reviewed by Reuters, the DGCA has allowed the airline to extend crew duty limits and adjust rest periods on affected long-haul flights. This exemption is currently valid for two weeks, extending until mid-May 2025, while the regulator evaluates more sustainable, long-term solutions.
While other Indian airlines such as IndiGo are also experiencing disruptions, their exposure is significantly less. IndiGo does not operate services beyond Istanbul Airport in Europe and has no direct flights to North America, minimizing the impact of the airspace closure on its network.
Air India’s call for support comes at a time when the airline is working to enhance its international presence post-privatization. The unforeseen restrictions due to regional tensions have not only jeopardized scheduling and route efficiency but are now posing serious financial implications. The airline awaits a response from the government as policymakers consider possible measures to protect the national carrier’s international competitiveness under extraordinary circumstances.
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