How air routes are reshaping trade in South Asia
India wants China to open a flight corridor over Xinjiang, even though the area is highly militarised. Tensions with India have led Pakistan to close its airspace to Indian aircraft, causing Air India losses estimated at over US$ 450 million a year. Meanwhile, closures of land crossings between Pakistan and Afghanistan are paralysing regional trade, leading Ariana Afghan Airlines to lower fares to Indian markets.
New Delhi (AsiaNews) – Air routes between South Asian countries reflect the new alliances forming in the region.
According to a recent report by Reuters, Air India is lobbying the Indian government to convince China to allow passage through Chinese airspace in the Xinjiang region, to access shorter routes, at a time when its operating costs are rising due to the closure of Pakistani airspace.
Direct flights between India and China resumed only a few weeks ago after they were suspended in June 2020 following military clashes in the Himalayan border areas.
For Air India, the need for an alternative route underscores the devastating financial cost of the current flight restrictions.
India’s national airliner has estimated that the impact of the closure of Pakistani airspace on its profits before tax will amount to US$ 455 million annually. Given that the airline's fiscal loss for 2024-25 was US$ 439 million, this represents a significant additional burden.
On some routes, fuel costs have increased by up to 29 per cent due to the proliferation of conflicts, and travel times have increased by up to three hours. Direct routes from Mumbai and Bengaluru (Bangalore) to San Francisco, for example, are “becoming unviable”, according to the airline.
Air India estimates that by passing through the city of Hotan, in Xinjiang, it could reduce losses by approximately US$ 1.13 million per week.
However, the airspace Air India wants to use is not simply a civilian corridor. It is surrounded by mountains exceeding 6,000 metres in altitude and pose security risks.
It is under the control of the People's Liberation Army's Western Theatre Command with an extensive presence of air defence systems, including drones and missiles.
For Air India, opening this route may be the only chance to restore its financial health.
This comes as the Pakistan Airports Authority (PAA) recently issued a notice extending the ban on Indian aircraft using Pakistan airspace until 24 December.
The measure follows the rise in tensions between India and Pakistan in late April, when a terrorist attack in Pahalgam, in the disputed region of Kashmir, killed 26 Indians, prompting a harsh response from New Delhi, which launched a missile attack against Pakistan.
In response to India's decision to suspend the Indus Waters Treaty, Pakistan announced the closure of its airspace to all Indian-owned or operated airlines.
For its part, the PAA reported a deficit of 4.1 billion rupees in August. India, meanwhile, is also reshaping its alliances.
In an attempt to revive exports, stalled due to the border closure between Pakistan and Afghanistan, Ariana Afghan Airlines, Afghanistan's national airliner, slashed cargo rates between Afghanistan and India by more than half, a decision taken based on directives from Economic Deputy of the Office of the Prime Minister.
Tensions between Pakistan and Afghanistan have also increased in recent months, primarily due to Kabul's continued support (according to Islamabad) for the Pakistani Taliban, who are primarily responsible for the rise in terrorist attacks in the country.
For Ariana Afghan Airlines, the move is aimed at supporting Afghan manufacturers and traders access international markets.
According to Afghan authorities, losses resulting from the closure of border crossings with Pakistan are estimated at US$ 200 million per month.
According to the Afghan National Statistics and Information Authority (NSIA), in the first three quarters of 2025, Afghanistan imported goods from Pakistan worth US$ 1.241 billion, equivalent to 12.8 per cent of its total imports.
Afghan exports to Pakistan in the same period amounted to US$ 432.7 million, corresponding to 38.3 per cent of Afghanistan's total exports.
In view of the situation, Pakistan risks losing up to US$ 150-170 million if the disruption continued, especially jeopardising trade in Khyber Pakhtunkhwa province, which borders Afghanistan and where fruit and vegetable prices have already risen.
Faced with an impasse, the Taliban have intensified their use of the Iranian port of Chabahar and routes through Central Asia.
INDIAN MANDALA IS THE ASIANEWS NEWSLETTER DEDICATED TO INDIA. WOULD YOU LIKE TO RECEIVE IT EVERY FRIDAY? TO SUBSCRIBE, CLICK HERE.
.png)
18/01/2023 13:48
19/09/2023 19:04
04/01/2022 15:55
21/04/2022 14:06
