India’s flag carrier is urging New Delhi to open high-level talks with Beijing over access to a sensitive stretch of airspace in Xinjiang, as the airline grapples with steep operational and financial pressures stemming from Pakistan’s ongoing ban on Indian overflights. According to an internal document reviewed by Reuters, the carrier argues that limited access to air corridors over Hotan, Kashgar and Urumqi could help stabilise long-haul operations that have been significantly disrupted since late April.
The appeal—unusual both for its geopolitical complexity and for its request to enter a zone overseen by China’s Western Theater Command—comes at a delicate moment. India-China commercial flights only recently resumed after a five-year freeze triggered by a border clash, and Air India is still working to restore its global network following a fatal Boeing 787 crash in Gujarat in June that killed 260 people and prompted temporary fleet checks.
Pakistan Airspace Closure Drives Losses
With Pakistani airspace closed to Indian carriers, Air India reports that fuel burn on key routes has surged by nearly 30%, with flying times stretching by up to three hours on certain U.S. and European services. The airline estimates the annual hit to profit before tax at roughly $455 million—greater than its entire loss for the 2024–25 fiscal year.
The Xinjiang routing, Air India argues, would allow faster access to North America and Europe and provide emergency alternates in a region where diversion options are otherwise limited. “Air India’s long-haul network is under severe operational and financial strain … Securing Hotan route will be a strategic option,” the document states.
Geopolitical and Safety Barriers
The proposed corridor presents both political and technical challenges. The airspace sits amid some of the world’s highest mountain ranges and is closely monitored by the People’s Liberation Army, whose Western Theater Command is tasked with responding to any India-related conflict. Analysts note the terrain, sparse diversion airports, and security sensitivities make Chinese approval unlikely. No foreign airlines have used Hotan airport in the past year, according to flight-tracking data.
Beijing’s foreign ministry said it was unaware of the request and referred inquiries to relevant authorities. Aviation regulators in India, China and Pakistan did not respond to Reuters’ questions.
Long-Haul Routes at Risk
The prolonged detours have already forced route suspensions and operational downgrades. Air India halted its Delhi–Washington service in August, while nonstop flights from Mumbai and Bengaluru to San Francisco now require an added stop in Kolkata—pushing total travel time to the edge of commercial viability. Foreign competitors such as Lufthansa are now matching or beating Air India’s timings on some India–U.S. city pairs because they retain access to shorter paths over Pakistan.
The carrier says gaining access to the Hotan route could recover up to 15% of lost passenger and cargo capacity on certain North America services and reduce weekly losses by more than $1 million.
Financial Strain Compounded by Tax Disputes
As the pressure mounts, Air India is also asking for temporary government support until Pakistan reopens its skies. At the same time, it is seeking assistance in resolving legacy tax liabilities—issues that predate its 2022 privatization and were expected to be indemnified by the government. Recent tax notices totalling hundreds of millions of dollars have raised the threat of coercive collection measures, adding to cash-flow challenges even as the airline pursues a $70-billion aircraft acquisition program.
For now, the government is reviewing Air India’s plea. Whether Beijing will entertain the request remains uncertain, but without relief, the carrier warns that more long-haul routes may become economically unsustainable.