Dubai/Delhi, November 2025 – Air India is lobbying the Indian government to request access to restricted military airspace in Xinjiang, China, aiming to shorten long-haul flight routes to the U.S., Canada, and Europe. The request comes after Pakistan closed its airspace to Indian carriers in late April, causing fuel costs to rise by up to 29% and journey times to extend by up to three hours.

According to a confidential Air India document reviewed by Reuters:

• The Pakistan airspace ban has cost the airline an estimated $455 million annually, exceeding its fiscal 2024-25 loss of $439 million.
• Air India seeks emergency access to airports in Hotan, Kashgar, and Urumqi to maintain operational viability on key international routes.
• Without the Xinjiang route, some flights, including Mumbai- and Bengaluru–San Francisco, are now considered “unviable,” pushing passengers to foreign carriers.
• The airline estimates the Hotan route could cut fuel usage, reduce flight times, restore 15% of lost passenger and cargo capacity, and lower weekly losses by $1.13 million.

The Chinese airspace in question is under the People’s Liberation Army’s Western Theater Command, featuring high-altitude terrain and extensive military installations, making access politically and operationally sensitive. Analysts doubt China will approve the request.

Air India is also seeking temporary subsidies from the Indian government until Pakistan airspace reopens, and assistance in resolving legacy tax disputes totaling $725 million, which add further cash flow strain.

The move highlights the financial and operational pressure on India’s primary international carrier, which continues to recover its global network after the June Boeing 787 crash in Gujarat that killed 260 people.