Air India is urgently appealing to the Indian government to negotiate with China for access to a restricted military airspace corridor in Xinjiang. The airline hopes this shortcut will reduce flight times and offset the massive operational losses caused by Pakistan’s ongoing ban on Indian overflights.
The plea comes at a sensitive moment—just after India and China restored direct flights following a five-year freeze triggered by border tensions. Air India, still recovering from a deadly Dreamliner crash in June that killed 260 people, is now battling escalating financial pressure.
Since April, Pakistan’s closure of its skies to Indian carriers has forced Air India to reroute long-haul flights, adding up to three extra hours and raising fuel costs by nearly 29%. Internal documents reveal the airline’s profit before tax has taken a $455 million annual hit, worsening its existing losses.
To ease the burden, Air India wants China to allow routes over the Hotan region, providing quicker access to destinations in the US, Canada, and Europe. But aviation experts warn the chances are slim—Xinjiang’s military-controlled airspace is surrounded by high mountains and is considered unsafe for international airlines.
The travel disruption has already forced Air India to suspend its Delhi–Washington route and re-evaluate other long-haul flights. Meanwhile, foreign carriers—who continue to use Pakistan’s airspace—are attracting passengers with shorter flight times.
Without a breakthrough, Air India fears deepening financial strain. The airline is also seeking temporary government subsidies and help resolving legacy tax disputes worth over $725 million, warning that enforcement action on past dues could damage its operations and reputation.
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