Trouble Mounts for Indian Airlines as Pak Extends Airspace Ban till September 23

Pakistan extended the ban over its airspace usage by Indian airlines on August 20. The ban, which was earlier set to expire on August 24, has now been extended to September 23. The development came after the Pakistan Airports Authority (PAA) issued a fresh NOTAM (Notice to Airmen) for extending the ban by another month. The ban is applicable to both civilian and military aircraft owned, operated or leased by India. 

“All aircraft operated by Indian airlines will not be allowed to use Pakistani airspace. The ban also remains in place for military and civilian aircraft that are Indian-owned or leased,” the PAA said. 

The airspace ban was first imposed by Pakistan after the tensions between the two countries escalated following the Pahalgam terror attack in Jammu and Kashmir in April this year. India had responded with a similar ban over its airspace for Pakistan’s aircraft on April 30. The ban, since then, has been extended by both countries, at least thrice.

The tit-for-tat measures have severely impacted the air carriers of both countries as airlines now have to take a longer route. 

Air India, which commands over a 26.5% market share in India, is expected to face around $600 million in additional costs if the ban over Pakistan’s airspace lasts for a year, Reuters earlier reported. Air India crossed Pakistan’s airspace to fly to Europe, the US, and Canada. But now with the longer route required to go to these western countries, airlines have to bear additional expenses due to higher fuel costs. 

Air India had reportedly suggested the government for a “subsidy model” to compensate for the financial losses, estimating a loss of more than $591 million for each year the ban lasts. 

“Subsidy for affected international flights is a good, verifiable and fair option... the subsidy can be removed when the situation improves,” Reuters had reported, citing a letter. “The impact on Air India is maximum due to airspace closure, due to additional fuel burn...additional crew,” the letter mentioned. 

But it's not just Indian airlines that are bearing the brunt, Pakistan too has been severely impacted. The PAA lost over ₹1,240 crore in just two months of the ban, Pakistan's newspaper the Dawn reported, citing the Defence Ministry data.