The communication was issued after government officials asked Air India executives to evaluate the consequences of the airspace restrictions

Air India to cost extra $600 Million if Pakistan continues closing its airspace:  Air India anticipates incurring an additional expenditure of approximately 600 million dollars if Pakistan continues to ban Indian airlines from using its airspace for a year. The airline has requested compensation from the central government, according to a report by Reuters citing a company letter.

Pakistan closed its airspace to Indian carriers following the Pahalgam terror attack on April 22, resulting in longer flight durations to destinations such as the United States, Canada, and Europe, which previously used Pakistani airspace for quicker access.

On Sunday, Air India reportedly submitted a request letter to the Indian government, proposing a "subsidy model" to offset the financial losses the airline may face—amounting to over 50 billion rupees (approximately 591 million dollars) annually, as long as the ban remains in effect.

"Subsidy for affected international flights is a good, verifiable, and fair option... the subsidy can be removed when the situation improves," the letter stated.
"The impact on Air India is maximum due to the airspace closure, resulting in additional fuel burn and the need for extra crew," the letter explained.

The communication was issued after government officials asked Air India executives to evaluate the consequences of the airspace restrictions on Indian carriers, Reuters reported.

Air India operates significantly more long-distance international routes compared to other Indian airlines. The carrier recorded a net loss of 520 million dollars in fiscal year 2023–2024, with total revenue amounting to 4.6 billion dollars.

Indian carriers have consulted with the Ministry of Civil Aviation to explore alternative flight paths—such as routes over terrain near China—and to consider potential tax relief measures, according to the report.

In the letter, Air India also sought approval to assign extra pilots on long-haul flights to the United States and Canada to accommodate the extended journey times.

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