Home » Air India Seeks Access to China’s Xinjiang Airspace Amid Financial Crisis

Air India Seeks Access to China’s Xinjiang Airspace Amid Financial Crisis

written by Ashish Rana Source

International

oi-Ashish Rana

Time

Air India has asked the Indian government to open diplomatic channels with China so that the airline can use a restricted airspace corridor in Xinjiang. The request comes as the carrier faces rising financial pressure because Pakistan has blocked Indian airlines from using its airspace.

Air India Seeks Access to China’s Xinjiang Airspace Amid Financial Crisis
Air India Deal With China

Air India has requested the Indian government to negotiate with China to use a restricted airspace corridor in Xinjiang after Pakistan blocked its airspace, increasing fuel expenses by up to 29 percent and extending flight durations. The airline, facing financial strain and seeking access to the Hotan route, estimates losses of $455 million annually due to the closure and is also dealing with significant tax claims from before its 2022 privatization.

Impact of Airspace Restrictions

The appeal to access the sensitive Xinjiang region was made shortly after direct flights between India and China resumed following a five year break that began with the border clash between the two nations.

Air India has been trying to strengthen its global presence after a London bound Boeing 787 Dreamliner crashed in Gujarat earlier this year, killing 260 people and prompting temporary safety related flight reductions.

That recovery plan has been hit hard by Pakistan's airspace ban, which has been in effect since diplomatic tensions escalated in late April.

According to a document submitted to the government in late October, fuel expenses for the airline have risen by as much as 29 percent and flight durations have stretched by up to three hours on certain long distance routes. The carrier is India's only airline with a large international footprint.

What the Airline Is Seeking

The request under review seeks permission for alternative routing and emergency access to airports in Hotan, Kashgar and Urumqi in Xinjiang. This would shorten travel times to destinations in the United States, Canada and Europe.

"Air India's long haul network is under severe operational and financial strain... Securing Hotan route will be a strategic option," the document said.

The airline, jointly owned by Tata Group and Singapore Airlines, estimated that the Pakistan airspace closure is hurting its profit before tax by around 455 million dollars each year. This figure is larger than its total loss of 439 million dollars in the 2024 to 2025 financial year.

The Chinese foreign ministry said it was not aware of the matter and directed questions to the relevant authorities. Aviation regulators in India, China and Pakistan did not respond to Reuters.

The section of airspace Air India wants to use sits among some of the highest mountain ranges in the world, reaching 20,000 feet or more. International carriers usually avoid these areas due to the risks involved if a decompression emergency occurs.

It is also controlled by the People's Liberation Army's Western Theater Command, which maintains strong missile, drone and air defense capabilities. Several airports in the region are shared by both civilian and military aircraft.

Safety and Competitive Pressures

A Pentagon report released in December noted that the Western Theater Command is responsible for responding to any potential conflict with India. Open source intelligence analyst Damien Symon has observed recent expansion at the Hotan airbase.

China's defence ministry did not comment on the issue. Radar data from AirNav shows that no foreign airline has used the Hotan airport over the past twelve months.

Aviation analyst Shukor Yusof said, "Air India can try, but it's doubtful China will accede" because of the difficult terrain, limited emergency airport options and possible security sensitivities.

Airspace restrictions worldwide have tightened due to the rise in conflict zones. United States carriers have been prohibited from flying over Russia since the Ukraine war began in 2022, pushing them away from several routes to India. This gave Air India an advantage on non stop US bound flights.

However, the Pakistan airspace shutdown forced Air India to halt the Delhi to Washington service in August. Other routes are under evaluation. Direct flights from Mumbai and Bengaluru to San Francisco are now described as financially unviable because travel time has increased by nearly three hours and requires a refueling stop in Kolkata.

A Munich connection on Lufthansa from San Francisco to Mumbai now takes only five minutes longer than Air India's service.

"Passengers (are) shifting to foreign carriers due to shorter flight time as they have the benefit of Pakistan overflight," the document said.

Air India believes access to the Hotan route would cut fuel use, reduce delays and allow the airline to restore passenger and cargo capacity it had scaled back by up to 15 percent on routes such as Delhi to New York and Delhi to Vancouver. It estimates a potential reduction of losses by about 1.13 million dollars each week.

Financial Strain and Outstanding Liabilities

With no signs of Pakistan reopening its skies to Indian airlines, the carrier has also requested a temporary subsidy until the situation improves.

The airline has placed aircraft orders worth 70 billion dollars and is seeking help in resolving older tax issues. Although the government guaranteed indemnity for liabilities before the 2022 privatization, the carrier has received several notices concerning past tax claims amounting to 725 million dollars.

A confidential government notice from March warned of "coercive steps" which could involve freezing of assets to recover 58 million dollars in one case.

Air India said that challenging these tax demands has created an "additional cashflow burden... despite assurances during disinvestment."

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written by Ashish Rana Source

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