Pakistan Closes Airspace for Indian Carriers: Potential Airfare Increases due to Longer Routes, Higher Fuel Consumption
Aviation Turmoil: The recent closure of Pakistan's airspace to Indian airlines could potentially deal a hefty blow to the Indian aviation sector, particularly for international flights departing from northern regions. This move has put a spanner in the works for westbound flights, heading towards Central Asia, the Caucasus, the Middle East, Europe, the UK, and North America, as they'll now be forced to take longer, fuel-consuming routes. The decision comes in retaliation to India's measures following the Pahalgam terror attack, where 26 lives were sadly lost.
Taking a closer look at Delhi Airport's recent flight routes, it's evident that this move will throw a wrench in the works for multiple Indian carriers. Industry experts have suggested that airline operational costs are bound to surge, potentially burdening passengers. On the flip side, international carriers from other countries might continue to use Pakistan's airspace, giving them a competitive edge over Indian airlines.
Looking back at 2019, when Pakistan shut its airspace following the Balakot airstrikes, Indian airlines reportedly chalked up losses of around Rs 700 crore due to detours and increased fuel use. Air India, which operates most long-haul international flights to Europe and North America, was hit the hardest.
Low-cost carrier IndiGo, which has recently expanded its international network into the Caucasus and Central Asia, has issued a travel advisory for passengers. There will likely be delays of up to 90 minutes for flights from Delhi to Baku and Tbilisi, and the Delhi-Almaty service has been cancelled. IndiGo urges customers to request refunds via their website.
At the moment, Indian airlines remain tight-lipped about the potential financial blow. However, sources reveal that carriers are currently busy evaluating the situation and working on reorganizing their flight paths. Flights from cities like Delhi, Lucknow, and Amritsar may now be rerouted through Gujarat or Maharashtra before proceeding westward.
In the days to come, it's expected that the full financial and operational implications will come to light. Major Indian carriers like Air India, IndiGo, Air India Express, Akasa Air, and SpiceJet operate international flights to various Western destinations, many of which regularly pass over Pakistani airspace.
It's worth mentioning that Pakistan had completely closed its airspace on February 26, 2019, after the Indian Air Force strikes in Balakot. The airspace didn't reopen until July 2019. By then, the estimated collective loss for Indian carriers had exceeded Rs 550 crore and later rose to around Rs 700 crore. The average flight durations increased by 70 to 80 minutes during this period.
In essence, the closure of Pakistan's airspace brings significant financial and operational hurdles for Indian airlines. The sector faces increased costs, reduced efficiency, and potential fare hikes for passengers. The sector's vulnerability to geopolitical developments becomes clear in this scenario.
Key Points to Remember
- Financial Challenges: Indian airlines face substantial financial losses due to increased operational costs caused by longer routes and higher fuel consumption.[1][3] During the 2019 closure, carriers reported losses of approximately Rs 700 crore.[2][3]
- Operational Woes: Airlines must adjust schedules and potentially cancel certain flights if operating around Pakistani airspace becomes unviable.[3] Longer detours necessitate more fuel, leading to higher operational costs and potential payload limitations.[5]
- Airfare Factor: International airfares on Indian carriers may rise by 8–12% due to increased costs, with further potential increases if the situation persists.[5] Airlines might pass these increased costs on to passengers, leading to higher airfares.[1][5]
- Airline Actions: IndiGo has already cancelled flights to certain destinations, and other airlines might follow suit by modifying their networks or schedules.[3] Airlines must maintain operational stability while navigating the impacts of airspace closure.[3]
- The closure of Pakistan's airspace to Indian airlines has the potential to disrupt the financial stability of the Indian aviation sector, especially for international flights departing from northern regions.
- According to industry experts, airline operational costs are likely to rise due to the longer, fuel-consuming routes that westbound flights will need to take, potentially burdening passengers.
- In the past, during the 2019 closure of Pakistan's airspace, Indian airlines reported losses of around Rs 700 crore due to detours and increased fuel use, with Air India being among the worst affected.
- Low-cost carrier IndiGo has already issued a travel advisory for passengers, warning of delays and cancellations for certain flights from Delhi to destinations like Baku, Tbilisi, and Almaty, due to the airspace closure.
