Air India Seeks China’s Xinjiang Airspace as Losses Surge

Air India is urging the Indian government to negotiate access to a sensitive Chinese military airspace corridor over Xinjiang to shorten long-haul routes.

Air India is urging the Indian government to negotiate access to a sensitive Chinese military airspace corridor over Xinjiang to shorten long-haul routes.
The request comes after Pakistan shut its airspace to Indian carriers in late April, forcing Air India to take lengthy detours.

The airline is already struggling with reputational and operational pressures following a deadly June crash of a London-bound Dreamliner in Gujarat that killed 260 people.
Direct flights between India and China only resumed weeks ago after a five-year freeze triggered by border clashes.

Why It Matters

The Pakistan airspace closure has pushed Air India’s fuel costs up as much as 29%, added three hours to some routes, and threatens the viability of key flights to the U.S. and Europe.
The airline estimates the ban is costing it $455 million annually, a massive hit given its FY24–25 loss of $439 million.

Without relief, flagship routes including direct flights from Mumbai and Bengaluru to San Francisco are “becoming unviable”.
Passengers are already shifting to foreign carriers offering shorter routes via Pakistani airspace.

What Air India Wants

A document submitted to Indian officials shows Air India is asking New Delhi to seek diplomatic approval from Beijing for:

Use of the Hotan-Kashgar-Urumqi corridor

Emergency landing rights at airports in Xinjiang

A temporary subsidy until Pakistan reopens its skies

According to Air India, securing the Hotan route could:

Reduce fuel burn and flight duration

Restore passenger and cargo capacity cut by 15%

Save an estimated $1.13 million per week

Why China’s Airspace Is Hard to Access

The corridor sits over mountain ranges reaching 20,000 ft, posing safety risks for decompression emergencies.
More critically, it lies inside the PLA’s Western Theater Command the most sensitive military zone for China’s India border operations, equipped with missile, drone and air-defence systems.

Military control over China’s airspace is far stricter than in most countries, and analysts say Beijing is unlikely to grant access.
No foreign airline has used Hotan airport in the past year, according to AirNav Radar.

Air India – Facing major financial strain and network disruptions

Indian Government – Weighing diplomatic outreach to China

China (PLA Western Theater Command) – Controls the requested airspace

Pakistan – Maintaining the airspace ban that triggered the crisis

Global Carriers – Some now offering faster alternatives, eating into AI’s market share

What’s Next

India is reviewing the airline’s plea, but Beijing has not acknowledged the request.
If China refuses access and Pakistan keeps its airspace closed, Air India may have to:

Cut more routes

Absorb deeper financial losses

Rely on government subsidies

Compete with foreign airlines offering faster, cheaper connections

Meanwhile, legacy tax disputes worth $725 million continue to add cash-flow pressure, with Indian authorities warning of possible coercive recovery steps.

With information from Reuters.

Sana Khan
Sana Khan
Sana Khan is the News Editor at Modern Diplomacy. She is a political analyst and researcher focusing on global security, foreign policy, and power politics, driven by a passion for evidence-based analysis. Her work explores how strategic and technological shifts shape the international order.

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