Air India’s’ Pak airspace ban ‘warning’ due to loss of $ 600 million: Report


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If Pakistan’s airspace sanctions – which will lead to high fuel expenses – lasts for a year, Air India can withstand up to $ 600 million in additional costs. The airline is demanding government subsidy to reduce deficit as the ban will severely affect its operation.

New Delhi:

Indian water Reuters of the news agency on Thursday evening, citing a company letter, said that Pakistan paid to Indian airlines up to $ 600 million in additional costs after closing its airspace.

The letter stated that the cost – which can add in the next year, assuming that the Pak airspace remains closed – this involves an increase in the cost of fuel for long flight time by the rooted aircraft.

At the time of long flight, the airline warned, will also affect passengers.

As a result, Air India is expected to lose more than $ 591 million for the ban every year.

In response to the diplomatic sanctions by India after the Pahgam attack, the ban – said that Delhi has said that the Pak was supported by Deep State – is expected to remain until May 23.

However, it does not affect international airlines.

Therefore, Air India has asked the government for proportional subsidy, the Reuters said the letter to the Ministry of Aviation. “Subsidy for affected international flights is a good, verified and appropriate option … subsidy can be removed when the situation improves …”

“Effect on AI is maximum due to airy closure, additional fuel burn, crew.”

Read | Airlines braces for high costs, Pakistan circles after a ban from airspace

Neither Air India nor Ministry of Aviation have so far commented.

Pak airspace ban, long flights

It is not just Air India that is breaking for increased costs, something that will harm the Tata group -owned airline, which alone reported a net loss of $ 520 million in FY2023/24.

IndiGo has said that some of its flights have also been affected; For example, on Thursday, a flight of its New Delhi-Baku (in Azerbaijan) took five hours and 43 minutes, 38 minutes long.

Read | Pakistan shut down airspace, San Francisco-Deli flight time up to 4 hours

However, this effect is likely to be more on Air India as it operates a greater number of international flights that fly in Pakistan to reach their destination in general. For example, Delhi-Midil East Flights will now be forced to fly at least one hour additional, which will require more fuel.

Read | Air India, IndiGo warned of impact on flights after Pak shut aircraft

There is an estimated 1,200 flights from New Delhi for destinations in Europe, Middle East and North America in April between AI and its budget service, Air India Express and IndiGo.

Subsidy for Airlines?

Prime Minister Narendra Modi’s government has vowed to vengeance for Pahgam, warning the terrorists who pulled the trigger and those who plan for retaliation.

Read | PM’s independent hand for forces to decide Pahgam’s military response

On Wednesday, the PM met Defense Minister Rajnath Singh and Defense Staff General Anil Chauhan, and military action against the alleged resistance front, a restricted Pakistan-based terrorist group, against a proxy of Lashkar-e-Taiba.

However, the government is considered aware of the impact of attacks on Kashmir and the country’s businesses and as a result of political and military consequences.

Reuters reported that it is considering options to offset the impact on airlines, including assistance including involving additional pilots on long flights to the US and Canada, tax breaks and, in an unusual step, working with China (a Pakistani) overflight clearance.

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