Air India eyes Chinese airspace use amid Pakistan ban

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New Delhi/Hong Kong: The decision to ban the use of its airspace by Indian airlines has prompted Air India to lobby the Indian government to convince China to cut routes amid the financial cost of using a sensitive military airspace zone in Xinjiang.

The unusual request comes just weeks after direct India-China flights resumed after a five-year hiatus following the Himalayan border standoff between the United Nations.

Air India is trying to rebuild its reputation and international network after the London-bound Boeing Dreamliner crashed in June, killing 260 people and forcing it to briefly ground flights for safety checks.

But the effort has been complicated by the closure of Pakistan’s airspace to Indian carriers since their diplomatic tensions erupted in late April.

For Air India, the country’s only carrier with a large international network, there has been a 29 percent cut in fuel costs and up to three hours in travel time, according to a previously unreported document presented to Indian officials in late October.

The Indian government is reviewing Air India’s request to diplomatically allow alternative routing and emergency access from China in the case of diversions in Hotan, Kashgar and Urumqi in Xinjiang, with the aim of speedily reaching us, Canada and Europe, the document said.

“Air India’s long-haul network is under severe operational and financial pressure […] Securing the Hotan route would be a strategic option, he added.

The airline, owned by the Tata Group and Singapore Airlines, had estimated the impact of the closure of Pakistan airspace on its pre-tax profit at $455 million a year.

China’s foreign ministry said it was not aware of the situation and referred Reuters to “relevant authorities”.

Air India and civil aviation officials in India, China and Pakistan did not respond to questions from Reuters.

Shift of passengers to foreign carrier

Chinese aerospace is trying to access Air India, it is cut off by some of the world’s highest mountains at 20,000 feet (6,100 m) or more, and is avoided by international airlines because of the security risks in the event of a conflict.

More critically, military analysts say, it also falls under the People’s Liberation Army’s Western Theater Command, which is armed with extensive missile, drone and air defense assets and shares some airfields with civilian aircraft.

A December Pentagon report on China’s military said the command’s responsibilities include responding to any conflict with India.

China’s military has greater control over the country’s airspace than most other aviation markets, restricting flight paths. Open-source intelligence tracker Damien Seaman said China’s military recently expanded an air base in Houtan.

China’s defense ministry did not immediately respond to a request for comment.

Ernao Radar data shows no non-Chinese airlines have departed or arrived at Hotan Airport in the past 12 months.

Shakur Yusuf, founder of aviation consultancy Endo Analytics, said: “Air India may try, but it is doubtful that China will gain access to the region, given the region’s terrain, lack of emergency airports and the possibility of security issues.”

Global airspace is limited by expanding conflict zones.

US carriers have been banned from flying over Russia since the start of the Ukraine war in 2022, and the US has pulled out of many routes to India. This gave Air India a near monopoly on non-stop flights from India.

But after the closure of Pakistan airspace, Air India’s Delhi-Washington route was suspended in August. While other routes are now being reviewed, the direct Mumbai- and Bengaluru-to-San Francisco routes have become “unfeasible”, with an additional three hours of travel time including a technical stop in Kolkata, the document said.

Lufthansa’s flight from San Francisco to Mumbai via Munich is now just five minutes longer than Air India.

“Traveler [are] The documents state that the shift to foreign carriers is due to shorter flight times as they have the benefit of Pakistan overflights.

Air India estimates that the proposed Hotan route in China could significantly reduce additional fuel requirements and flight times, help restore passenger and cargo capacity that would allow it to trim up to 15 percent on routes such as New York and Vancouver-Delhi, and cut losses by an estimated $1.13 million per week.

Financial distress

There are no signs of relaxation of airspace restrictions, the document said, adding that Air India also “does not want temporary subsidies until Pakistan opens airspace”.

Air India, which has ordered ₹70 billion aircraft, is seeking help in resolving legacy tax issues.

The document said India’s government had indemnified the airline against claims payable before it was sold to Tata in 2022, but several notices related to old tax liabilities of $725 million, raising legal and reputational risks.

In a confidential March government notice obtained by Reuters, tax authorities are shown taking “coercive measures” – including freezing assets – to recover debts of $58 million in one case.

Coping with such tax requirements results in “additional cash flow burdens.” […] The airline said that despite assurances during the fair “.