"Financial setback for Pakistan: Self-inflicted airspace restriction leading to millions in losses for India"
Rewritten Article
India's tough stand on diplomatic ties with Pakistan following the Pahalgam terror attack has led to Pakistan closing its airspace for Indian flights. While Pakistan responded by suspending SAARC visas and reducing their diplomatic staff, this airspace closure comes at a significant financial cost for Pakistan.
As you might've guessed, airspace isn't free. Overflight fees are the charges imposed on airlines for the privilege of flying through a country's airspace without landing. These fees help cover maintenance costs, air traffic control services, and other related expenses.
When it comes to Pakistan, these overflight fees equate to a substantial loss. By blocking Indian flights, Pakistan forfeits millions in potential earnings. During the 2019 airspace closure following the Pulwama attack and Balakot strike, Pakistan reportedly lost over $100 million in just five months.[1][5]
Now, let's break down the daily losses. Without overflight fees, Pakistan lost around $232,000 on a regular day.[5] But don't forget about other charges like terminal navigation, landing, and parking fees, which pushed the total daily losses to roughly $300,000.[5]
Pakistan International Airlines (PIA) wasn't spared either. They suffered additional daily losses of nearly $460,000 due to suspending international routes and upping costs for domestic flights.[5] In summary, the Civil Aviation Authority (CAA) and PIA combined face daily losses of approximately $760,000.[5]
These historical figures give us a pretty good idea of the financial impact of future airspace closures. It ain't pretty, that's for sure.
- Despite the financial costs, Pakistan's decision to close its airspace for Indian flights is a response to the diplomatic ties strain resulting from the Pahalgam terror attack.
- The closure of Pakistan's airspace implies a downgrading of the industry's collaboration, as overflight fees are a significant source of income for Pakistan's finance.
- War-and-conflicts, politics, and general-news have influenced Pakistan's decision to close its airspace, causing a significant loss in revenue for the aerospace industry.
- The closure of Pakistan's airspace has indirectly affected other sectors, such as PIA, as they are estimated to lose nearly $460,000 per day due to the suspension of international routes and increased domestic flight costs.
- In addition to overflight fees, terminal navigation, landing, and parking charges contribute to the daily financial losses of roughly $300,000 for Pakistan, as a result of the airspace closure.
- The Civil Aviation Authority (CAA) and PIA combined are estimated to face daily losses of approximately $760,000, demonstrating the extensive financial consequences of airspace closures in the context of war-and-conflicts, politics, or crime-and-justice.
