Air India Requests Funds as Pakistan Airspace Ban Hits Routes

Air India (AI, Delhi International) has formally requested financial assistance from the Indian government to offset losses incurred due to Pakistan’s ongoing airspace closure. In a letter cited by Reuters, the airline estimated potential annual losses of more than INR50 billion (USD590 million) if the situation continues.

The flag carrier is proposing a temporary “subsidy model” tied directly to its financial impact, with support to last only as long as the Pakistani airspace remains inaccessible. Air India did not comment on the request when approached by ch-aviation.

Pakistan closed its airspace to Indian aircraft on April 24, 2025, following heightened political tensions. In response, Air India has been forced to reroute its Europe and North America services, leading to significantly longer flight times. As a result, the airline has introduced fuel stops in Vienna and Copenhagen for westbound flights, excluding those to Vancouver and San Francisco, which still operate over the Pacific.

The added distance is also driving up operational costs due to fuel burn and extended crew duty times. To ease the strain, India’s Directorate General of Civil Aviation (DGCA) has temporarily relaxed flight duty time limitations (FDTL) for pilots operating long-haul routes. An internal memo seen by Reuters confirms this exemption will run until mid-May 2025, while regulators consider a more permanent resolution.

While low-cost carrier IndiGo has also been affected by the closure, the impact is minimal due to its limited long-haul network, which currently does not extend beyond Istanbul in Europe.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com