Op Sindoor Fallout: Air India Knocks At PMO Door for China Route, Rs 4,000-Cr Relief Amid Soaring Losses

Air India’s urgent plea for government support under ‘Operation Sindoor’ has reached the Prime Minister’s Office, with a meeting starting today at 11:30 am and currently underway. The airline has formally requested a Rs 4,000-crore subsidy and approval to use Chinese airspace, citing mounting operational losses following Pakistan’s airspace closure.

Why Air India Says Losses Are Rising
According to senior airline officials, detours around Pakistan, introduced after the Pahalgam terror attack, have forced flights to take longer routes. This has triggered “massive fuel and crew-time losses,” especially on long-haul international sectors. Air India is currently the only Indian carrier seeking government compensation for these disruptions.

PMO Calls Key Meeting Under Operation Sindoor
The PMO has convened a high-level review under Operation Sindoor, bringing in senior officers from the Ministry of Civil Aviation, Airports Authority of India, and other departments.

Air India CEO Campbell Wilson will attend the meeting, sources mentioned. 
 

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 Air India Again Seeks Rs 4,000-Cr Subsidy Over Pak Airspace Closure

In october end, Air India has renewed its demand for a ₹4,000-crore subsidy, citing heavy losses due to Pakistan’s continued airspace closure, sources told Republic Media Network. The airline says rerouting long-haul flights after the Pahalgam terror attack has sharply raised fuel, crew and operational costs.

The Civil Aviation Ministry has summoned CEO Campbell Wilson after he claimed that the closure has caused an estimated ₹4,000-crore hit to the Tata-owned carrier. Wilson is under criticism as no other Indian airline has sought similar relief.

Air India earlier warned of $600 million in extra annual costs if the ban stays. In a letter to the government, the airline said a subsidy model for affected flights would be a fair option until the situation improves.

Govt Sources Signal Further Evaluation of Air India’s Request

Meanwhile, top government sources have told Republic that the ₹4,000-crore subsidy request will be evaluated in detail, with the matter likely to be taken up with other key stakeholders. A third round of discussions with the Ministry of Finance is expected as part of the ongoing review process.