Air India CEO Campbell Wilson has confirmed that the closure of Pakistan’s airspace could cost Air India about Rs 5000 crore in a year. In an interview with CNBC-TV18 . The Ministry of Civilian Aviation asked the airline operators in the company to provide an estimate on the financial impact of Pakistan’s airspace closures.
“We were asked to provide a ballpark cost of what it would be for us, and so we provided a number”, said the Air India CEO in the interview.
What is the impact
After the closure of Pakistan’s airspace for Indian flights, the airlines have to re-route the flights, making them longer flights. Apart from the operational complexity, this results in longer flight durations and higher fuel and operating costs.
CEO Campbell said after the closure of Pakistan’s airspace in the wake of Operation Sindoor, airports in 13 cities where Air India operates were closed. This affected about 1000 Air India flights and about 7000 passengers.
Besides Air India, other major airlines also faced a similar situation, and they would incur similar costs if Pakistan’s airspace closure drags on for a longer period.
What are the solutions
The government has also asked the airlines about their plans for mitigating the disruption caused by the closure of Pakistan’s airspace. The airline operators in India suggested dynamic network planning and route adjustments to minimise the effect of airspace closure.
Air India said, “We have had a number of discussions with the government on how we can mitigate those costs and make travel more convenient for people”. He added that the company is not involved in any active negotiations or discussions at the moment; however, as the government takes a position from a geopolitical perspective, the company will adjust accordingly.