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Airlines

Air India presses for Xinjiang airspace amid mounting financial woes

Air India wants New Delhi to ask China for Xinjiang corridor access to cut costly detours caused by Pakistan’s airspace ban, which added hours and raised fuel costs up to 29%. The bid aims to ease severe financial strain and requires sensitive diplomatic and military negotiations. Indian officials are reviewing the request against safety, strategic and operational concerns.

Last updated: November 19, 2025 9:27 am
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Key takeaways
Air India asked New Delhi to seek China permission to fly through Xinjiang’s military-controlled corridor.
Pakistan airspace ban added up to three hours and fuel costs rose as much as 29% on routes.
Air India estimates Pakistan ban costs about $455 million annually, exceeding its $439 million loss.

(XINJIANG, CHINA) Air India has asked New Delhi to open talks with Beijing for permission to fly through a tightly controlled military corridor over China’s Xinjiang region, in a high‑stakes effort to cut losses on long‑haul routes to the United States 🇺🇸, Canada 🇨🇦 and Europe. The push comes as the carrier battles a deepening financial crisis made worse by a ban on Indian airlines using Pakistani airspace.

According to internal documents submitted in late October, the airline is urging Indian officials to seek diplomatic approval for a new route across Xinjiang airspace, with emergency diversion rights at airports in Hotan, Kashgar and Urumqi. Airline planners believe this corridor would shorten some transcontinental routes by hours, slashing fuel burn and helping restore the economics of flights linking India with major hubs in North America and Europe.

Air India presses for Xinjiang airspace amid mounting financial woes
Air India presses for Xinjiang airspace amid mounting financial woes

Timing and geopolitical context

The timing is striking: the request landed only weeks after direct India‑China flights resumed following a five‑year freeze triggered by a deadly border clash in the Himalayas. While those commercial flights signal a cautious thaw in ties, Xinjiang remains one of China’s most politically sensitive regions, heavily militarised and central to Beijing’s security strategy.

Granting a foreign carrier access to that airspace, even at high cruising altitude, would mark a major shift. Air India’s interest in Xinjiang is driven principally by financial necessity rather than geopolitics.

Financial pressures driving the request

Since Indian carriers lost access to Pakistani airspace, long‑haul flights have been forced onto lengthy detours north or south, adding up to three hours to some journeys. Company figures show fuel costs have jumped by as much as 29% on affected routes — a major burden in an industry with thin margins.

Internally, Air India estimates the Pakistan ban is impacting annual profits by about $455 million, a figure that exceeds the airline’s reported $439 million loss for the 2024‑25 financial year. Executives argue that without a new, shorter corridor over Xinjiang, some long‑haul services may become too expensive to sustain, limiting direct connectivity for India’s large overseas population and for foreign travelers.

Additional financial strains

  • Legacy tax liabilities: about $725 million
  • Confidential notice in March warned of possible “coercive steps,” including asset freezes, to recover at least $58 million in one outstanding case
  • Post‑crash funding: shareholders Tata Sons and Singapore Airlines agreed to inject around $1.1 billion after the June 2025 disaster

The airline’s modernisation push — placing roughly $70 billion in aircraft orders — is a long‑term bet that sits uneasily alongside urgent cash needs. Air India has asked the Indian government for temporary subsidies until flights over Pakistan can resume, arguing its role in connecting India to the world justifies short‑term support.

Safety, public trust, and the June 2025 crash

The crisis deepened after a Boeing 787 Dreamliner crash in Gujarat in June 2025 that killed 260 people, severely damaging public trust in the airline’s safety standards. In response, shareholders pledged funds to:

  • support operations
  • pay for safety upgrades
  • finance public outreach to win back passengers

For many Indian families, especially those with relatives abroad, confidence in a flag carrier’s safety record directly shapes choices about when and how often to fly.

Operational and regulatory complexities

Aviation specialists are sceptical that Beijing will agree. “Air India can try, but it’s doubtful China will accede,” said aviation consultancy founder Shukor Yusof, pointing to the region’s complex terrain, limited diversion options and tight security.

Data from AirNav Radar shows no non‑Chinese airlines have arrived at or departed from Hotan airport in the past year, underscoring how closely Beijing guards this part of its western frontier and the airspace above it.

Chinese approval would also require detailed talks on:

  • safety and search‑and‑rescue responsibilities
  • military coordination and control
  • special procedures beyond normal commercial overflight agreements

International overflights are usually covered by bilateral air services deals and the Chicago Convention (overseen by the International Civil Aviation Organization), but sensitive regions like Xinjiang often sit inside special military control zones. Those zones give defense authorities broad power to limit or deny access even when civil regulators are open to cooperation.

Strategic and diplomatic considerations

Indian officials have not commented publicly on the specifics of Air India’s Xinjiang proposal, but the government has confirmed the airline’s broader financial concerns are under review. According to analysis by VisaVerge.com, New Delhi has in recent years treated international air links as a strategic tool — both for economic growth and for maintaining ties with the diaspora.

Any move to ask China for special airspace access will be weighed against:

  • commercial needs and cost savings
  • current state of India‑China relations
  • broader strategic implications for bilateral cooperation

Key takeaway: decisions made in military and diplomatic circles determine which skies are open and which are closed — with direct consequences for airlines’ finances and for everyday travellers.

Potential passenger impacts

For travellers, the outcome could shape travel between India and the West for years:

🔔 Reminder
REMINDER: Even with new corridors, geopolitical tensions can override plans—monitor official updates, as overflight approvals hinge on security talks and may change with little notice.
  • Longer detours → higher operational costs → possibly higher fares
  • Tighter schedules or reduced frequency on some routes
  • Shorter, direct paths over Xinjiang → could keep ticket prices more affordable and preserve non‑stop services

Those effects matter particularly for students, professionals, migrants and families who depend on direct flights for quick trips within limited visa windows or work leave.

What would talks involve?

If New Delhi pursues the route seriously, negotiations would likely include:

  1. Civil aviation regulators (building on frameworks such as India’s Ministry of Civil Aviation)
  2. Defense ministries from both countries
  3. Diplomatic channels to handle military and security sensitivities

Because much of Xinjiang’s airspace is military in nature, final approval would rest with China’s security establishment.

Current status and final note

For now, Air India waits. Its plea sits with Indian authorities against a backdrop of rising fuel bills, tax disputes, crash‑related costs, and the long shadow of the Pakistan airspace ban. Whether or not the Xinjiang corridor opens, the request underscores how fragile and politically exposed international flight networks can be — and how quickly an airline’s financial health can be affected when one key stretch of sky is suddenly out of reach.

VisaVerge.com
Learn Today
Xinjiang → A heavily militarised region in western China with special security controls over airspace.
Airspace corridor → A designated route through controlled skies allowing aircraft to fly along agreed tracks.
Diversion airport → An airport designated for emergency landings if a flight cannot continue to its destination.
Pakistan airspace ban → A prohibition on Indian carriers using Pakistani skies, forcing longer detours for flights.

This Article in a Nutshell

Air India has asked Indian authorities to seek Chinese permission to fly through a controlled corridor over Xinjiang to shorten long‑haul routes to North America and Europe. The request responds to financial strain from a Pakistani airspace ban that adds up to three hours and has increased fuel costs by as much as 29%, worsening losses. Approval would require complex diplomatic, military and safety agreements; New Delhi is reviewing the proposal amid geopolitical sensitivities and operational concerns.

— VisaVerge.com
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Shashank Singh
ByShashank Singh
Breaking News Reporter
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As a Breaking News Reporter at VisaVerge.com, Shashank Singh is dedicated to delivering timely and accurate news on the latest developments in immigration and travel. His quick response to emerging stories and ability to present complex information in an understandable format makes him a valuable asset. Shashank's reporting keeps VisaVerge's readers at the forefront of the most current and impactful news in the field.
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