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India Closes Airspace To Pakistan After Pahalgam Attack: Who Bears The Cost?

India Closes Airspace To Pakistan After Pahalgam Attack: Who Bears The Cost?

Business Today
Business Today
  • New Delhi,
  • May 2, 2025,
  • Updated May 2, 2025, 1:13 PM IST

Following the deadly Pahalgam terror attack that claimed 28 lives, India has shut its airspace to all Pakistani aircraft in a retaliatory move. This special report explores how this ban is impacting Pakistan’s aviation sector, particularly Pakistan International Airlines (PIA), which has been forced to reroute flights from Islamabad and Lahore to Kuala Lumpur via China. This detour adds nearly three hours to flight times, increasing fuel consumption, operational costs, and causing potential delays and reduced flight frequency. The closure of Indian airspace is not just a political statement but also a significant economic blow to Pakistan. Pakistan’s own ban on Indian airlines is backfiring as it loses crucial overflight fees, estimated at around $232,000 daily, potentially surpassing $50 million in losses. This mirrors the 2019 Pulwama-related airspace closure, which cost Pakistan nearly $100 million. While India’s aviation industry remains robust with multiple carriers, Pakistan’s reliance on PIA means the impact is more severe, straining its already fragile airline operations.

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