Air India Urges China For Quick Access To Xinjiang Airspace To Alleviate Critical Financial Strain And Enhance Flight Efficiency

Published on November 20, 2025

Air India has called on China to grant expedited access to its airspace over Xinjiang, aiming to alleviate the airline’s mounting financial strain and improve operational efficiency. The move is crucial for reducing flight times and operational costs on routes to Europe and North America. By securing quicker access, Air India could streamline its operations, ensuring more timely and cost-effective services, thereby addressing the financial challenges that have intensified in recent years.

Air India is lobbying the Indian government to request permission from China to access a sensitive military airspace zone in Xinjiang, which would help shorten flight routes and reduce the financial burden imposed by the ongoing ban on Indian airlines flying over Pakistan. This appeal comes just weeks after India and China resumed direct flights following a five-year hiatus, which was a result of the two nations’ border conflict.

The airline’s struggle to regain its reputation and rebuild its international network has been compounded by multiple setbacks. In June, a Boeing 787 Dreamliner bound for London tragically crashed in Gujarat, resulting in 260 fatalities. The crash prompted the airline to briefly suspend flights for safety checks, further disrupting its operations.

The situation has worsened due to Pakistan’s airspace closure to Indian carriers, which has been in effect since late April, following escalating diplomatic tensions between the two countries. As a result, Air India has been forced to reroute its flights, leading to an increase in both fuel costs and travel times. Some long-haul routes have seen travel times increase by as much as three hours, while fuel costs have surged by up to 29%. According to an internal document submitted to Indian officials in late October and reviewed by Reuters, the Pakistan airspace closure is expected to cost Air India approximately $455 million annually in lost profits. This amount is particularly significant, considering that the airline’s fiscal loss for 2024-25 stood at $439 million.

The request for access to Chinese airspace comes at a time when Air India is struggling to recover from these setbacks. The document, which remains confidential, highlights the airline’s urgent need for a solution to counter the growing financial strain caused by the ongoing airspace restrictions. Air India’s plea seeks access to Chinese airspace around Xinjiang, a region bordered by some of the highest mountain ranges in the world, including peaks that reach altitudes of over 20,000 feet (6,100 meters). This area is typically avoided by international airlines due to safety concerns, particularly in the event of a decompression incident at such high altitudes. However, the airline argues that the airspace could significantly reduce fuel consumption and shorten flight times for some long-haul routes.

The Chinese government has so far stated that it is unaware of the request, directing inquiries to the relevant authorities. Neither Air India nor the civil aviation departments in India, China, and Pakistan responded to requests for comment on the matter.

The airspace in question is strategically important due to its proximity to China’s Western Theater Command, which controls a significant number of military assets, including air defence systems, missiles, and drones. These military resources are tasked with ensuring China’s defense in the event of any conflict with India. The command is also responsible for overseeing the security of certain airports, which are shared between civilian and military flights. As a result, the Chinese government exercises considerable control over airspace in this region, making it more difficult for international airlines to access.

Moreover, China’s military has a greater grip on its airspace than many other nations, limiting the number of available flight routes and severely restricting air traffic in sensitive regions. Open-source intelligence reports indicate that China has been expanding its airbase in Xinjiang, yet there are no records of non-Chinese airlines operating out of Hotan airport in the last year, according to data from AirNav Radar. This indicates that China maintains tight control over its airspace, particularly in areas such as Xinjiang.

The aviation industry globally has been under pressure from an increasing number of airspace restrictions due to ongoing geopolitical conflicts. For example, U.S. carriers have been banned from flying over Russian airspace since the Ukraine war began in 2022. This ban has forced airlines to adjust their flight plans, with some U.S.-India routes no longer operating. This situation has left Air India with a near-monopoly on non-stop flights between India and major destinations like the United States.

As a result, Air India has seen shifts in passenger preferences, with some travelers opting for foreign airlines that benefit from shorter flight times due to access to Pakistan’s airspace. The internal document suggests that Air India could benefit from the proposed Xinjiang airspace route, which would cut down on fuel consumption and travel time, and potentially restore up to 15% of its passenger and cargo capacity on affected routes, such as those between New York and Vancouver and Delhi. By implementing this route, Air India estimates it could save $1.13 million per week.

With no signs of Pakistan reopening its airspace anytime soon, Air India is seeking a temporary subsidy from the Indian government to help offset the financial losses caused by the airspace restrictions. Additionally, the airline is seeking assistance with resolving long-standing tax issues that date back to before its sale to Tata Group in 2022. The company has received multiple notices regarding tax liabilities amounting to $725 million, a significant burden that could pose legal and reputational risks.

A government notice from March warned of “coercive steps,” such as asset freezes, if the outstanding tax dues are not resolved. Despite assurances from the government during the privatization process, Air India has faced challenges in contesting these tax demands, which has created an additional strain on the airline’s cash flow.

Air India is urging China for faster access to Xinjiang’s airspace to cut down on flight times and operational costs, aiming to ease its financial difficulties and improve efficiency.

In light of these challenges, Air India is calling for urgent action to address the escalating financial toll caused by the Pakistan airspace closure and its ongoing struggles with legacy tax issues. The airline’s plea for access to Chinese airspace represents a critical step in its efforts to mitigate the impact of these restrictions and restore profitability. As it seeks to regain its position in the global aviation market, the airline’s future depends on resolving these complex issues in the near future.