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Air India feels the heat of Pak airspace ban

  • Air India experienced a financial deficit of $520 million during the 2023-2024 fiscal year and is encountering operational difficulties following Pakistan's 2025 decision to close its airspace to Indian airlines.
  • The closure of Pakistan's airspace followed a retaliatory move linked to an incident involving tourists in Kashmir, causing disruptions to Air India’s usual flight paths.
  • Air India has requested financial assistance from the Indian government to offset losses and sought authorization for additional pilots and overflight permissions from Chinese authorities to accommodate extended flight durations.
  • The airline anticipates approximately $600 million in extra annual expenses if the airspace ban continues and indicated that financial support would be discontinued once the circumstances improve.
  • The Indian government is considering tax exemptions and alternative flight paths closer to China while permitting temporary extensions to pilot duty periods to address the operational impact.
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Zawya broke the news in on Thursday, May 1, 2025.
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