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Air India has requested the Indian government for access to a sensitive military airspace in China’s Xinjiang region to shorten flight routes, according to a company document reviewed by Reuters. This is because the airline is facing rising costs due to Pakistan’s ongoing ban on Indian airlines.
According to reports, the move comes after India-China resumed direct flights after a five-year break due to the Himalayan border standoff. According to the document submitted to Indian authorities in late October, Air India aims to secure alternative routing and emergency access to airports in Xinjiang’s Hotan, Kashgar and Urumqi to reach the US, Canada and Europe faster.
“Air India’s long-haul network is under severe operational and financial pressure… Securing the Houghton route would be a strategic option,” the document quoted Reuters as saying.
The airline, jointly owned by Tata Group and Singapore Airlines, estimates that the closure of Pakistan airspace has resulted in a loss of about $455 million annually in pre-tax profit, a significant figure considering the loss of $439 million in the financial year 2024-25. According to the document, fuel costs have increased by 29%, and travel time on some long-distance routes has increased by up to three hours.
The Chinese Foreign Ministry said it was not aware of the situation and referred Reuters to “relevant authorities” when the agency sought comment. Air India and civil aviation officials in India, China and Pakistan did not respond to Reuters questions.
The requested airfield is located in an area with some of the highest mountains in the world and is under the jurisdiction of China’s People’s Liberation Army Western Theater Command. Analysts say international airlines largely avoid the region due to potential security risks in the event of disruption incidents and security concerns. Open-source intelligence indicates that China has recently expanded an airbase in Hotan.
Air India is also seeking temporary financial assistance from the Indian government until Pakistan reopens its airspace. According to the document, the airline, which has ordered aircraft worth $70 billion, is grappling with inheritance tax issues totaling $725 million. Several government notices, including a warning in March to take “coercive action” to recover dues of $58 million at one go, have increased its cash flow burden.