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Updated April 29th 2025, 00:31 IST

Pakistan's Airspace Closure Hurts More Than Helps: Proves Blow To Its Own Crumbling Economy

Pakistan closes airspace for Indian planes, loses revenue from overflight fees. Indian airlines take longer routes, face higher fuel costs and flight times.

Reported by: Abhishek Tiwari
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Pakistan's Airspace Closure Hurts More Than Helps: Proves Blow To Its Own Crumbling Economy
Pakistan's Airspace Closure Hurts More Than Helps: Proves Blow To Its Own Crumbling Economy | Image: AI Generated

New Delhi: The recent Pahalgam terror attack in Jammu and Kashmir has led to a big escalation of tensions between India and Pakistan. In response to the attack, Pakistan has closed its airspace for Indian planes, which has resulted in Indian flights having to take longer routes, increasing flight time and cost. However, experts believe that this move will ultimately prove to be counterproductive for Pakistan, as it will lose the overflight fees received from Indian flights.

The closure of Pakistan's airspace has implications for both countries. Indian airlines are facing higher fuel costs and longer flight times, which will likely impact their operations and profitability. On the other hand, Pakistan will lose a substantial source of revenue, which could have far-reaching consequences for its economy.

Pak Loses Overflight Fee

The overflight fee is a charge levied by a country's government or airline authority on foreign aircraft that pass through its airspace. The fee is paid for the use of airspace, air traffic control, and other services. The amount charged depends on various factors, including the type of aircraft, its size, and the distance covered in the airspace.

In the case of Pakistan, the overflight fee is a major source of revenue. According to reports, the fee for a Boeing 737 aircraft was around $580, while larger aircraft were charged higher fees. It is estimated that Pakistan lost $232,000 in overflight fees per day when it closed its airspace in 2019 following the Pulwama attack.

Pakistan's decision to close its airspace for Indian planes has been widely criticized, with many experts believing that it will ultimately harm the country's economy. Indian aircraft are now choosing alternative routes to avoid Pakistan's airspace, which means that Pakistan will lose the overflight fees it receives on every flight.

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Social Media Faceoff

A Pakistani user shared a video on social media showing an Indian aircraft taking a longer route, with the caption "And take the trouble." In response, an Indian user, Naren Menon, pointed out that Pakistan is losing the earnings from the world's third-largest and fastest-growing aviation market.

Menon's comments underlined the importance of India's aviation market for Pakistan's economy. Most flights from India to the west are operated by Indian airlines, which means that Pakistan will lose a substantial part of its overflight income.

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Airspace Closure Backfires

The closure of Pakistan's airspace will have major economic implications for the country. According to estimates, Pakistan lost around $100 million in 2019 when it closed its airspace following the Pulwama attack. The country's Civil Aviation Authority (CAA) and Pakistan International Airlines (PIA) suffered significant losses, with the latter losing $460,000 per day due to the suspension of international routes and longer routes of domestic flights.

The situation is likely to be similar this time around, with Pakistan facing losses due to the closure of its airspace. Indian airlines like Air India and Indigo have already announced that some of their international flights are being affected, with flights from cities like Delhi, Amritsar, Jaipur, Lucknow, and Varanasi taking longer routes.

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Published April 29th 2025, 00:31 IST