Air India will see a $600 million loss with Pakistan banning its airspace after Pahalgam attack: Report

The letter said the costs, which might go up next year given the Pakistani airspace remains shut to it, include increased fuel expenses for longer flight times by re-routed planes.

The longer flight times, the airline warned, will also impact passengers.

As a result, Air India is likely to see a loss of over $591 million each year till the ban lasts.

The ban, ordered in response to India's punitive measures in the aftermath of the Pahalgam terror attack, which Delhi has said was supported by the Pak deep state, is expected to stay till May 23.

It does not, however, affect international airlines.

Air India has, therefore, asked the government for proportionate subsidies, Reuters reported, quoting the letter to the Aviation Ministry.

"Subsidy for affected international flights is a good, verifiable and fair option ... the subsidy can be removed when the situation improves..."

"Impact on AI is maximum due to airspace closure, additional fuel burn, crew," it said.

India shuts airspace for Pak flights

After Pakistan decided to close its airspace to all flights operated by Indian carriers, New Delhi on Wednesday announced a reciprocal move by shutting down its airspace to all Pakistan-owned and operated planes, media reports said.

Flights from Pakistan, scheduled for destinations in Southeast Asia and Oceania, will now have to circumnavigate India.

Amid escalating tension, Islamabad is fearing military action by India, and hence, flights from Pakistan were in any case avoiding Indian airspace.

However, with an official announcement by New Delhi, Pakistani flights shall not be permitted in the Indian airspace even if they wish to.

Pahalgam Attack

On April 22, the terrorists- belonging to The Resistance Front (TRF), an offshoot of Pakistan-based Lashkar-e-Taiba (LeT)- asked the victims (tourists visiting the scenic Pahalgam in Kashmir) to chant Islamic verses (kalma) and made them pull down their pants to be sure of their their non-Muslim religious identities (read circumcision)  before gunning them down in front of their families, including wives, children and daughters.

The massacre triggered nationwide outrage and escalated India-Pakistan tensions as New Delhi vowed to avenge the killings.

In an immediate response  India suspended the landmark Indus River water-sharing treaty and closed the Attari-Wagah road border which acts a lifeline of Indo-Pak trade and people-to-people ties, besides expelling diplomats, downsizing high commissions and issuing a 48-hour deadline to Pakistani visa holders present in India to leave.

Modi Gives 'Full Freedom' To Forces

Prime Minister Narendra Modi has given the armed forces 'complete freedom to decide on the mode, targets, and timing' of India's military response to the Pahalgam terror attack.

Amid escalating tension with Pakistan, PM Modi took the decision at a meeting with Defence Minister Rajnath Singh, National Security Advisor Ajit Doval, and Chief of Defence Staff General Anil Chauhan on Tuesday night.

The Prime Minister reaffirmed that it is 'our national resolve to deal a crushing blow to terrorism' and that he has 'complete faith and confidence' in the Indian military.

His message gave a green light to military action against the terrorists who killed 26 people, mostly Hindu tourists, in Pahalgam's Baisaran, in the worst possible target on civilians since the Pulwama attack in February 2019.

After the Pulwama attack, India conducted precision air strikes on terrorist camps in Pakistan's Balakot. The camps were run by the banned terror group Jaish-e-Mohammed with help from the Pakistan Army.