Debt-ridden Indian airliner company, Air India, has urged the Indian government to convince China to allow it to use its sensitive military airspace so that it can access shorter routes as the Pakistan airspace closure has hit the company hard, a company document reveals.
Reports by leading news agencies show the “unusual” request came in just weeks after India resumed flights to Shanghai after nearly five years following clashes between the militaries of the two countries in Ladakh.
India’s military escalation with neighbouring Pakistan in May this year following the deadly Pahalgam terrorist attack had led to both countries closing their airspace for each other’s aircraft.
However, this has also meant more financial woes for Air India, the country’s only carrier with a major international network, as journey times increased by up to three hours on certain long-haul routes, fueling costs by as much as 29 per cent, as per a document by the airliner submitted to Indian officials in late October.
The Indian government is said to be reviewing Air India’s plea to diplomatically ask China to allow an alternate route over Xinjiang, as well as emergency access to airports in case of diversions at Hotan, Kashgar, and Urumqi in Xinjiang.
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Acquired by the Tata Group in 2022, Air India and Air India Express posted a loss before tax of ₹9,568.4 crore in the financial year that ended March 2025, according to the civil aviation ministry. As per the data, the debt of Air India stood at ₹26,879.6 crore when it was taken over by the Tata Group. In 2024-25, its loss stood at $439 million.
In its document submitted to Indian officials, news sources said the airline estimated that the Pakistan airspace closure’s impact on its profit before tax was at $455 million annually.
Air India quoted in its document that the requested Hotan route in China could substantially cut additional fuel requirements and flight times and help restore passenger and cargo capacity that it was forced to trim by as much as 15 per cent on routes like New York- and Vancouver-Delhi. It will also help reduce losses by an estimated $1.13 million per week, it said.
While the Chinese foreign ministry said it was not aware of the situation, it must be noted that the Chinese airspace that Air India is seeking access to is said to be avoided by international airlines due to potential safety risks in case of a decompression incident since it is surrounded by some of the world’s highest mountains.
The space also falls within the control of the People’s Liberation Army’s Western Theatre Command, which is equipped with missile, drone, and air defense assets. It is also authorised to respond to any conflict with India.
Whilst its latest request is being processed, the airliner also wants “temporary subsidy till Pakistan airspace opens”, the document said.