Financial problems are getting bigger! Air India lobbies government for access to airspace in China’s Xinjiang as closure of Pakistani airspace increases costs: report – The Times of India

Air India has approached the Indian government seeking access to restricted military airspace in China’s Xinjiang region to shorten international flight routes, according to a Reuters report citing an internal company document. The move comes as the airline faces higher operational costs due to the closure of Pakistani airspace to Indian airlines.The appeal, filed in late October and reviewed by Reuters, comes shortly after flights between India and China resumed after a five-year suspension.For Air India, the closure of Pakistani airspace has had significant financial consequences. Fuel costs have risen by as much as 29%, while journey times on certain long-distance routes have increased by as much as three hours. The airline estimated the restriction could cost $455 million a year, higher than the reported loss in the 2024-2025 financial year of $439 million, Reuters reported.Air India is exploring alternative routes, including emergency access to Hotan, Kashgar and Urumqi airports in Xinjiang, with the aim of improving connectivity with the US, Canada and Europe. “Air India’s long-haul network is under severe operational and financial pressure… Securing the Hotan route will be a strategic option,” the document said, according to the Reuters report.The airspace targeted by Air India lies between some of the world’s highest mountains, with altitudes above 20,000 feet, and is generally avoided by international airlines due to decompression safety risks. It also falls under the jurisdiction of the Chinese People’s Liberation Army’s Western Theater Command, which controls military assets and shares some airports with civilian flights.Aviation experts wonder whether China will grant permission. Shukor Yusof, founder of Endau Analytics, noted: “Air India can try, but it is doubtful whether China will join” due to the difficult terrain, limited emergency facilities and potential security risks.The closure of Pakistani airspace has already forced Air India to halt routes such as Delhi-Washington in August and evaluate others. Direct flights from Mumbai and Bengaluru to San Francisco are reportedly becoming “infeasible” due to an additional three hours of travel, including a stop in Calcutta.If awarded, the Hotan route could significantly reduce fuel consumption, shorten flight times and help restore passenger and freight capacity that has declined by up to 15% on routes such as New York and Vancouver-Delhi. The airline estimates the route could reduce weekly losses by about $1.13 million.The company is also asking for a “temporary subsidy until Pakistani airspace opens” and support in resolving existing tax issues. Despite reassurances during its 2022 takeover by Tata, Air India faces legacy tax assets totaling $725 million.