Post by : Rameen Ariff

Air India has urged the Indian government to negotiate with China for access to a military airspace corridor in Xinjiang. This request comes in response to Pakistan’s ban on Indian airlines, which has led to significant financial difficulties for the carrier.

Following Pakistan's closure of its airspace to Indian flights in April due to diplomatic tensions, Air India has been forced to take longer routes to destinations across the United States, Canada, and Europe. Some journeys are now taking up to three additional hours, driving up fuel costs markedly. Internal assessments indicate this situation is costing the airline approximately $455 million annually, surpassing last year's loss of $439 million.

To address these challenges, Air India seeks permission to utilize the airspace around Hotan, Kashgar, and Urumqi in China. Access to this corridor could considerably reduce travel distances, fuel expenses, and potentially eliminate the need for additional layovers in Kolkata on some routes. The airline anticipates that securing this clearance could allow it to regain lost passenger capacity and lessen weekly losses by over $1 million.

Nonetheless, obtaining such approval might prove difficult. The Xinjiang region is heavily monitored by China's Western Theater Command, which oversees military activities along the India-China border. The area's mountainous terrain complicates emergency responses, and the military presence deters most international airlines from flying through this area.

Moreover, the evolving global aviation landscape poses additional challenges. The pandemic and ongoing international conflicts have already disrupted air travel. For instance, U.S. airlines are barred from flying over Russian airspace due to the Ukraine war, diminishing Air India's once-advantageous non-stop routes to the U.S. The recent Pakistani airspace closure has further complicated operations. Air India was compelled to pause its Delhi-Washington flights in August, and routes from Mumbai and Bengaluru to San Francisco are now increasingly untenable due to rising costs and lower aircraft availability. Passengers are increasingly opting for foreign airlines that can utilize Pakistani airspace for shorter transit times.

Now under the ownership of Tata Group and Singapore Airlines, Air India is striving to reconstruct its global network. The airline has already faced difficulties this year, especially after a Boeing 787 Dreamliner incident in Gujarat led to a temporary flight reduction for safety checks. With the continued airspace restrictions, Air India has requested interim financial aid from the government until the situation normalizes.

In addition to current challenges, the airline is grappling with tax disputes amounting to over $725 million from its prior government ownership prior to its sale in 2022. Although earlier protection was guaranteed against such claims, new notices have been issued, imposing further financial strain.

Air India remains hopeful that diplomatic discussions with China will yield a resolution that stabilizes operations, mitigates substantial losses, and restores normal international services until Pakistan reopens its airspace to Indian aircraft.

#Global