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Wednesday, 2 January, 2002, 14:37 GMT
Costs mount for India airlines
Indira Gandhi airport
The closure of airspace will cause further delays for passengers travelling from India
India's aviation minister has warned that the closure of airspace could cost the country's carriers about $10m.

India and Pakistan have banned use of each other's airspace as tension between the two countries escalates following the attack on the Indian parliament on 13 December.

Flight times for many international journeys will be longer - as Indian carriers avoid flying over Pakistan and vice versa - and this is likely to increase airline fuel costs.

Some reports suggested that the cost for Pakistan airlines would be higher - though the country's national carrier has said the impact will be minimal.

Longer flights

"Following the closure of airspace by Pakistan for Indian aircraft, there shall be an (annual) loss of 400 million rupees to Air India, 50 million rupees a week to Airports Authority of India and 700,000 rupees per week to Indian Airlines," India's aviation minister Syed Shahnawaz Hussain said.

Altogether about 100 Indian flights are thought to be affected by the ban, with passengers seeing flight times extended by 15 to 75 minutes.

International carrier Air India has 36 flights over Pakistan.

Puja Mehra of the Business Standard newspaper in Delhi told the BBC's World Business Report: "Business would be viable because passengers do not have too many alternatives and the airlines really cannot help it... they would probably look at cutting costs anyway."

A report from the Press Trust of India suggested that Pakistan International Airlines (PIA) could face even greater costs.

Its flights will have to use Chinese and Sri Lankan airspace, further boosting fuel costs.

However, PIA has said that only 23 of its flights will be affected, pointing out that its most profitable routes are to the Middle East and Britain.

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 ON THIS STORY
Puja Mehra, Business Standard newspaper
"The international carrier will suffer a bigger blow than the domestic carrier"
See also:

02 Jan 02 | South Asia
Blair on India peace mission
02 Jan 02 | South Asia
India cool over Pakistan talks
23 Dec 01 | Business
US attacks push airlines to the edge
16 Dec 01 | South Asia
India and Pakistan: Troubled relations
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