New Delhi (TDI): As the airspace ban Pakistan imposed on Indian carriers continues for consecutive sixth week, the cost for Air India is turning from heavy to near-unsustainable.
The ban has incurred over Rs8.2 billion to the Indian national carrier. The company is bleeding approximately Rs200 million each day due to longer alternate routes, increased fuel consumption and delays triggered by the airspace detour.
Air India’s CEO, Campbell Wilson, has reportedly raised the issue with the Indian government. In a letter to officials in New Delhi, Wilson is said to have warned that if the situation continues unchecked, it may undermine the airline’s broader restructuring goals, according to media reports.
Just last year, Air India unveiled an ambitious five-year transformation strategy code-named “Vihaan” aiming to bring the airline back to profitability by 2027. But the current geopolitical standoff has thrown a wrench in those plans.
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Due to the restrictions, Air India has been compelled to make fuel stops in European cities like Vienna and Copenhagen, an expensive detour both in terms of cost and scheduling.
Air India isn’t the only one bearing the brunt. Other Indian airlines have also faced heavy operational disruptions, with suggesting cumulative losses are reportedly in the billions, though exact figures have not been disclosed.
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With diplomatic talks stalled and no immediate resolution in sight, industry analysts warn that Indian carriers may soon be forced to reduce international routes or pass on additional costs to travellers through fare hikes.
Until the skies reopen, for Indian airlines, every mile now comes at a premium.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
