The airline has asked the Indian government to provide economic relief equivalent to its estimated losses.

Air India expects to face an additional cost of about $600 million if the ban on Pakistan's airspace lasts for one year and asks the Indian government to compensate for it.

The New Delhi-based airline asked the government to adopt a "subsidy model" proportional to the economic outbreak, with the ban estimated that the ongoing losses of more than $591 million (INR 50 billion) a year, and the airline sent a letter to the civil airline and was seen by a message from a news agency.

Fuel costs and longer journey times and longer journey times for Air India after Pakistan's attack on tourists in Kashmir last week.

"Subsidies for affected international flights are a good, verifiable and fair option. ... Subsidies can be cancelled as the situation improves."

“Due to airspace closure, due to additional fuel combustion, the biggest impact on Air India, … the extra crew.”

Air India declined to comment on Reuters. The Ministry of Civil Aviation did not respond to channel requests for comment.

A source who knows directly about the matter said the letter from India was being sent after the government asked its executives to assess the impact of the airspace ban on Indian airlines.

The Tata Group-owned airlines are in a multi-billion dollar turnaround after a period of government ownership, and growth has been restricted by jet delivery delays from Boeing and Airbus. It reported a net loss of $520 million for fiscal 2023-2024 and sales of $4.6 billion.

Air India has a 26.5% market share in India, flying to Europe, the United States and Canada, often crossing Pakistani airspace. Its long-distance routes are more than domestic competitor Indigo.

Data from Indigo, India Air India Express totaled about 1,200 flights, combined for New Delhi in Europe, the Middle East and North America in April, according to Cirium Ascend.

Three other familiar with the matter said the Indian government is considering the option to reduce the blow to the aviation industry from the closure of Pakistan's airspace.

One of the sources said the Indian Airlines met with the Ministry of Civil Aviation to address possible solutions, including flying on difficult terrain close to China and some tax exemptions.

In the letter, Air India asked the government to maintain certain flights with Chinese authorities without elaboration.