Air India Faces Massive Losses as Pakistan’s Airspace Closure Disrupts Operations

ISLAMABAD: India’s national carrier Air India has reportedly incurred financial losses exceeding 4,000 crore rupees after being forced to reroute flights due to Pakistan’s closure of its airspace during Operation Sandur, Indian media outlet Republic News has acknowledged.

According to the report, the airspace restrictions compelled Air India to adopt significantly longer flight paths, sharply increasing fuel costs and operational expenses. The airline has now approached the Indian government seeking compensation for the losses and has requested permission to use Chinese airspace to mitigate the financial impact.

The Indian media outlet noted that the disruption not only caused economic strain but also highlighted operational challenges for India’s civil aviation sector. Despite the heavy financial burden, the report pointed out that India continues to pursue air-route-based trade with Afghanistan—an approach critics have described as impractical under the circumstances.

Pakistan’s strategy during Operation Sandur, which included restricting airspace access for Indian aircraft, resulted in what Republic News described as a “historic setback” for India, with military and economic consequences. The outlet further acknowledged that the Indian military leadership’s statements in response—characterised as “trailer-style threats”—reflect growing frustration over the operational challenges.

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The report also highlighted that Air India has sought government subsidies worth billions of rupees to cover the losses, a move seen by analysts as a sign of deeper policy failures within India’s aviation and strategic planning sectors.

The acknowledgment by Indian media of significant economic and operational setbacks marks a rare moment of candour in India’s coverage of its regional engagements.