Air India's Financial Strain Due to Pakistan Airspace Closure

Following Pakistan's decision to close its airspace to Indian carriers, Air India is facing an estimated additional expense of $600 million annually. The airline has formally requested compensation from the Indian government to mitigate these unforeseen costs.

Seeking Government Support and Exploring New Routes

In a bid to cope with the financial impact, Air India has proposed a 'subsidy model' to the Indian government. The airline is also considering alternative flight paths, including challenging terrains near China, to circumvent the current restrictions.

The Broader Impact on Indian Aviation

The closure not only affects Air India but also other Indian airlines, leading to increased fuel costs and longer flight durations. The Indian government is actively seeking solutions, including potential tax relief and negotiations for overflight permissions with Chinese authorities.