In an effort to combat the growing financial pressure, Air India is pressing the Indian government to discuss access to the limited airspace in China’s Xinjiang region which is prompted by the ongoing restriction on Indian carriers operating in Pakistani airspace. The closure has resulted in an increase in operating costs and increased flight times along the most important long-haul routes. Reuters+2ETInfra.com+2

The root cause of the problem
The problem began when Pakistan shut down its airspace to Indian airlines in the latter part of April 2025 following the escalating tensions between the two countries. India. Air India estimates that the ban could cost about US 600 millions over a period of 12 months due to a the higher cost of fuel and longer flights. 2TRT The World+2
In the wake of Pakistani airspace being closed, Air India says fuel costs have risen by as much as 29 percent on certain long-haul flights with additional travel durations that exceed three hours have become standard. ETInfra.com+1 In addition passengers’ load and capacity for cargo on routes like Vancouver-Delhi and New York-Delhi have been cut by up to 15% as the airline is struggling to keep its competitiveness. Aviation A2Z+1

The workaround proposed: Chinese airspace
In the face of these pressures, Air India is lobbying the Indian government to obtain the right to overflight from China specifically through airspace corridors to Hotan, Kashgar and Urumqi in Xinjiang province. The internal documents submitted to Air India describes this route as an “strategic option” to relieve the financial and operational stress. ETInfra.com+1
This access will allow Air India to reestablish the possibility of previously cancelled or reduced long-haul flightsfor instance, for flights to U.S., Canada and Europe — by reducing the duration of flights and reducing the consumption of fuel. In the report, it is estimated that the Chinese route would reduce the losses of the airline’s week by approximately US $1.13 millions. ETInfra.com+1

Risks and challenges
But the route towards China’s Xinjiang airspace isn’t simple. The airspace in question falls in the army’s Western Theatre Command of China and covers terrain that is higher than 10,000 feet and has only a few diversion options which makes several international airlines wary. Aviation A2Z
China’s foreign ministry claimed it was not aware of the request from Air India and directed it the matter to “relevant authorities”. The official statement has not been received to Indian, Chinese or Pakistani civil aviation regulators. International News International
If access was granted however, the airline will confront structural challenges of a larger scope that include tax liabilities from its past, which amount to around US $725 million and the transition of its fleet following the fatal crash in June 2025 on their Boeing 787 Dreamliner. ETInfra.com+1

What is the significance of this
The request demonstrates the ways that geopolitical tensions could ripple across commercial flights, altering the economics of routes and strategic planning. In the case of Air India, the ability to access China’s airspace over-flying could improve competitiveness and reduce the loss in revenue from Pakistan’s ban. Pakistan restriction.
For the Indian government, any decision to ensure Chinese access will come with diplomatic implications, including keeping in mind China’s strategic interests and restrictions on military airspace alongside the commercial requirements for one of the nation’s most important airlines.
And for China the decision to allow an airline from outside the country access to a highly sensitive military-controlled air corridor could create precedents for the future, both in aviation terms as well as geopolitical terms.

What should you do?
If India formally engages China through Air India, and how Beijing reacts.

The timeframe and the specifics of any rights over-flight, including emergency landing permits in Hotan, Kashgar or Urumqi.

What happens when Air India restructures its long-haul network to the demand for capacity, and if routes are being restored.

If Pakistan removes or reduces their bans on Indian carriers, it could ease the tensions facing the airline.

In the end Air India’s desire to gain Chinese access to airspace underscores the pressing pressures the carrier has to face in light of the Pakistan ban. The proposed solution, though technical and diplomatically difficult could become crucial to Air India’s long-haul strategy should the current limitations continue to exist.