Rs 300 cr hole in Air India pocket as Pakistan air space closes


By Nirbhay Kumar

New Delhi, Apr 28 (IANS): Air India has suffered losses of around Rs 300 crore since late February as its long haul flights from New Delhi are taking longer to reach destinations in Europe, the Gulf and the US because of the closure of Pakistan's airspace.

The Pakistani airspace has remained shut for traffic to and from India ever since hostilities broke out between the two countries after the Pulwama suicide bombing in Jammu and Kashmir on February 14.

With its aircraft operating from New Delhi spending longer time in air, Air India is incurring daily loss of Rs 6 crore on extra fuel burn, cabin staff expenses and reduced flights.

The national carrier has approached the Civil Aviation Ministry to ensure it is compensated for the loss given that the airline cannot pull out these flights due to various obligations.

"Air India has communicated to us about this. It is being taken up with all concerned," a Ministry official said.

The Air India flights to the US from Delhi now take 2-3 hours extra one way due to the restrictions over Pakistani airspace. Flights to Europe are taking almost two hours more resulting in financial loss.

The airspace closure following an air strike by the Indian Air Force on the Jaish-e-Mohamnad (JeM) terror camp in Pakistan's Balakot on February 27 has affected most airlines from Europe and the US that operate flights to and from New Delhi.

Almost the entire air traffic from South East Asia to Europe has also been impacted as they would pass through north India into Pakistan and onwards.

American carrier United has temporarily suspended its Delhi-Newark flight and is monitoring the situation.

German flag carrier Lufthansa had said earlier that connections to Bangkok and Singapore would also be hit besides operations to India.

"We are already preparing adjusted routes and will increase the amount of additional fuel in the event of delays. Some traffic rights for the new routing must also be secured," the airline had said on closure of Pakistani airspace.

An Air India official said that the airline has significant operations to Europe and North America and the diversion of flights due to closure of Pakistani airspace had so far caused a total loss of about Rs 300 crore.

"The losses on account of payload restriction and cancellation alone is about Rs 2.75 crore per day. The longer flying time has affected the duty hours of cabin staff and pilots," he said.

"The other airlines have an option to pull out services in such situations but as the national carrier we cannot do so," the official added.

  

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Comment on this article

  • SmR, Karkala

    Sun, Apr 28 2019

    Subramanian Swamy, the self-appointed conscience-keeper of the RSS who simultaneously maintains very powerful American connections and corporate links, has a remarkable knack for dropping unexpected bombshells at the right moments.

    He exploded one on 21 April 2019 in the context of the ongoing Jet Airways crisis when he tweeted: “Government better be careful: Two Ministers are manipulating sale of Jet Airways spoils to SpiceJet whose real owners I will reveal later. Only above-board option GoI has is amalgam of Jet with Air India since Bilaterals on airspace involves Govt”. It is well-known in media circles that Swamy was referring to the takeover attempt of the SpiceJet man Ajay Singh who coined the slogan Abki baar Modi Sarkar in 2014!

    Is this a devious attempt by the government to drive away other potential investors in favour of some “chosen one”? As it is, Spicejet would be a major gainer from the Jet Airways crisis as it has the second biggest market share after IndiGo.

    Even if the PSB lenders wanted to remove the incumbent management of Naresh Goyal and auction off Jet Airways to new bidders, why this is not being done through NCLT, the semi-judicial body, and under the IBC framework as per law? Why government is violating its own policy on effecting such transfers of corporate controls and the procedure for debt recast?

    After 'Jet Airways' made to die at the cost of 20,000 employees for SpiceJet man Ajay Singh who coined the slogan Abki Baar Modi Sarkar in 2014! Now Modiji, a war of adventurism with Pakistan, to finish national carrier 'Air India' which his government failed to secure any bidding will see 'demise' like Jet Airways?
    Jai Hind

    DisAgree [2] Agree [1] Reply Report Abuse

  • Ganesh, BANGALORE

    Mon, Apr 29 2019

    After Pulwama, why you asked to show 56 inches chest? you questiond modiji on retaliation? why backtrack now?. You wanted Modi to eat crow in front of Indians so that it affects BJP electorally badly and nothing else. make your stand clear. either you have retaliatory attacks or simply absob the attacks and keep mum so that there are no further economic costs. which side are you?

    DisAgree [1] Agree Reply Report Abuse

  • Jennifer, Mangalore

    Sun, Apr 28 2019

    This is the result of 'ghar mei ghus ker maara hai'.

    On one side Modi is unable to convince his opponents with proof of killing 350 terrorists and on the other hand he has caused such a huge loss.

    DisAgree [2] Agree [10] Reply Report Abuse

  • Aubb, India / Kuwait

    Mon, Apr 29 2019

    @Jennifer

    Jumla Foreign policy has backfired once again, costing Indian tax payers.

    DisAgree Agree [1] Reply Report Abuse

  • MeinBhiFenku, Mangalore

    Sun, Apr 28 2019

    Doesn't Matter!!!! "Hum log Pakoda Telenge and 300 crores ka Loss Bharenge" !!!!!! " Gutter Gas se Chai banake aur Ek Air Line " JUUMLA AIR" Shuru Karenge "

    DisAgree [1] Agree [7] Reply Report Abuse

  • Ganesh, Bangalore

    Sun, Apr 28 2019

    We can create more damage to Pakistan if we stop the flow of Indus into Pakistan. We can make them bend to their knees.

    DisAgree [5] Agree [4] Reply Report Abuse

  • Aubb, India / Kuwait

    Sun, Apr 28 2019

    Will Modi show his strength in front of Pakistan now...???

    DisAgree Agree [13] Reply Report Abuse

  • Sahil, Mangaluru

    Sun, Apr 28 2019

    Not good indication that everything goes under loss in recent days. Jet again air india. Something very fishy to watch in upcoming days as well.

    DisAgree Agree [24] Reply Report Abuse

  • Shamsuddin, Dubai

    Sun, Apr 28 2019

    At least now our 5. 6" will stop going in world tours in hugging mode and save tax payers money

    DisAgree [6] Agree [17] Reply Report Abuse

  • Dinesh, Dubai

    Sun, Apr 28 2019

    There is no Economist among Chowkidars, Lawyers and Historians cannot understand this problem
    They know only Thumping the chest........Now 56" is become 28" in 5 years only by thumping

    DisAgree [5] Agree [19] Reply Report Abuse

  • Rohith, Mallikatte Mangalore

    Sun, Apr 28 2019

    This airline is burden to tax payers. Lack of quality flight, flight attendants, customers service.. Please close this airline.

    This is applicable to BSNL.

    DisAgree [7] Agree [19] Reply Report Abuse

  • sunitha, udupi

    Sun, Apr 28 2019

    if you get sick you take medicine....not kill yourself.

    same thing Air India or BSNL ....Instead of all money going to Ambani pocket via Jio .....Improve BSNL.........let whole of India Gain

    DisAgree [3] Agree [28] Reply Report Abuse

  • Jennifer, Mangalore

    Sun, Apr 28 2019

    Rohit,

    Mismanagement ruins anything, govt or private. We have two private airlines collapsed in front our eyes. Do not blame the name, efficiency can make any business rise and walk.

    DisAgree [1] Agree [17] Reply Report Abuse

  • Rational thinker, Mangalore

    Sun, Apr 28 2019

    NDA”s great achievement . For us winning the election is more important than anything else.

    DisAgree [2] Agree [31] Reply Report Abuse

  • sunitha, udupi

    Sun, Apr 28 2019

    who will take credit for this????I mean pay for this????
    BSNL
    HAL
    now Air India

    DisAgree [1] Agree [25] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Apr 28 2019

    Air India will now be sold to Ambani for a Pittance ...

    DisAgree [5] Agree [46] Reply Report Abuse

  • sid, Mangalore

    Sun, Apr 28 2019

    you can buy before they take

    DisAgree [29] Agree [11] Reply Report Abuse

  • Jennifer, Mangalore

    Sun, Apr 28 2019

    How come the Ambanis, Adanis (especially, not other business houses), get contracts of telecom, defense, airports since 2014 ?? What were they doing for a living before 2014 ?? Who is to be blamed for loss of BSNL ? Jio, or not ? What made HAL loose Rafale - Ambani, or no ?

    Speculate gentleman, don't go with the flow. Someday all govt jobs will be gone, not necessarily far from your people being some of them who lost such jobs.

    DisAgree Agree [5] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Sun, Apr 28 2019

    Courtesy..., Jokers & DOMBARATA specialists....!!!! all are good for nothing..., national waste ....!!!!

    DisAgree [3] Agree [41] Reply Report Abuse

  • Sampath, India

    Sun, Apr 28 2019

    If money is more important than Nation..then happy stay in DXB forever... because we the taxpayers will handle such matters...

    DisAgree [35] Agree [6] Reply Report Abuse

  • ray, mangalore

    Sun, Apr 28 2019

    Which part of india will u handle!!!

    DisAgree [5] Agree [31] Reply Report Abuse

  • Bhaktas, Mangalore

    Sun, Apr 28 2019

    One more jumla...

    DisAgree [3] Agree [9] Reply Report Abuse

  • Chandu, Karla

    Sun, Apr 28 2019

    Please first provide the toilets to all and enough water before you handle the rest of the things. God help this country.

    DisAgree Agree [8] Reply Report Abuse

  • Ganesh, Bangalore

    Sun, Apr 28 2019

    World has limited resources. Some people breed , demand more and play victim card.

    DisAgree [3] Agree [1] Report Abuse


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Title: Rs 300 cr hole in Air India pocket as Pakistan air space closes



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