Pakistan's Airspace Closure Possibly Causes Weekly Additional Costs of Approximately Rs 77 Crore for Indian Airlines
India's Airlines Struggling Amidst Sky-High Costs from Rerouted Flights
Flying the friendly skies just got pricier for Indian airlines. Due to the forced rerouting of international flights departing from northern cities due to Pakistan's airspace closure, the weekly expenses for these flights are predicted to skyrocket by a whopping Rs 77 crore.
By crunching numbers based on extended flight duration and estimated costs, PTI estimates the monthly operational costs could reach an eye-watering Rs 306-307 crore, depending on the calculations.
As tensions between India and Pakistan heightened due to the Pahalgam terror attack, Pakistan confirmed they would bar Indian airlines from using their airspace on the 25th of February [Folow Live Updates on Pahalgam Terror Attack Here].
Alternative flight paths are extending flight times by up to 1.5 hours for international flights originating from Delhi and northern cities.
According to a senior airline official with extensive commercial experience, for every additional 1.5 hours on a 16-hour flight to North America, the cost would approximately be Rs 29 lakh. This price tag includes landing and parking charges at a layover airport.
Similarly, for 1.5 additional hours on a 9-hour flight to Europe, the extra cost would be around Rs 22.5 lakh. In the case of flights to the Middle East, the added time is about 45 minutes, which equates to an extra cost of approximately Rs 5 lakh.
In total, Indian carriers are scheduled to operate over 6,000 flights one-way to various international destinations in April, as shown by data from aviation analytics firm Cirium.
Out of these monthly flights, roughly 800 are operated weekly by Indian airlines to and from north Indian cities to overseas destinations, such as North America, the UK, Europe, and the Middle East.
With a considerable number of flights crossing the Middle East, around 1,900 flights each month, the extra cost of Rs 5 lakh per flight for the additional 45 minutes adds up to approximately Rs 90 crore.
If we consider the two-way flights to Europe and North America, the total is nearly 1,200, amounting to an additional cost of Rs 306 crore per month based on a 1.5-hour flight extension costing around Rs 29 lakh for North America flights and Rs 22 lakh for Europe flights.
Considering these rough estimates, the total additional monthly expenses would be around Rs 307 crore, and on a weekly basis, the total would come out to approximately Rs 77 crore.
The increased fuel consumption and longer flight hours also pose issues regarding payload, aircraft availability, and crew's flying duty hours.
On the 25th of April, IndiGo announced around 50 international routes operated by them may be subject to slight schedule adjustments due to the longer sectors. They also indicated that certain destinations, such as Almaty and Tashkent, are beyond the operational range of their current fleet [More on IndiGo's flight cancellations].
As of this writing, there have been no announcements from Air India, Air India Express, SpiceJet, or Akasa Air concerning flight cancellations due to the airspace restrictions.
UPDATE: Follow the Live Updates on Flight Cancellations due to Airspace Restrictions
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(Enrichment Data: Overall, Indian airlines are grappling with substantial operational cost hikes due to the rerouting of international flights from north Indian cities following Pakistan's airspace closure. The additional weekly costs are estimated to be around Rs 77 crore, which could swell to up to Rs 307 crore per month when extrapolated. These expensive detours stem from increased fuel consumption and prolonged flight durations on alternative routes for flights to North America, Europe, and the Middle East. For instance, a 1.5-hour extension for North American flights amounts to an additional cost of about Rs 29 lakh, while the same is true for Rs 22.5 lakh for European flights and Rs 5 lakh for Middle East flights. These cost hikes could pose challenges for airlines like Air India and IndiGo, which have extensive networks affected by the airspace closure.)
- Due to Pakistan's airspace closure, airlines, such as Air India, Air India Express, SpiceJet, and Akasa Air, are likely to experience increased operational costs, as they reroute international flights departing from northern cities in India.
- The extended flight durations on alternative routes for flights to North America, Europe, and the Middle East, like those operated by IndiGo, are likely to drive up costs. For instance, a 1.5-hour extension on a North American flight could cost around Rs 29 lakh, while the same could cost approximately Rs 22.5 lakh for a European flight and Rs 5 lakh for a Middle East flight.
- Sports events or teams traveling to these international destinations from Pahalgam may encounter additional costs due to the rerouting of flights and the subsequent increase in operating expenses for airlines, which could be passed on to the passengers.
