Singapore Airlines says Pakistan’s airspace closure hurt Air India more than foreign airlines
NEW DELHI: Singapore Airlines managing director Goh Choon Phong said Air India’s inability to use Pakistani airspace for more than a year has put the airline at a disadvantage against foreign carriers that continue to use the route.
Goh’s comments are arguably the first on the issue that has been plaguing Indian carriers since April last year. He noted that Air India, which is 25.1 percent owned by Singapore Airlines, must address the same problems as other airlines: supply chain delays, aircraft deliveries and the West Asia conflict.
“But beyond that, there are other issues they have to deal with. The closure of Pakistani airspace only affects India-based operations and no one else,” Goh said during the post-results call with investors on Friday.
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Singapore Airlines emphasizes that the closure of Pakistan’s airspace is a unique issue that only affects India-based operations, unlike foreign carriers that can still use the route. This closure results in longer flight hours and increased operational costs for Air India.
The closure of Pakistani airspace forces Air India to operate longer routes to Europe and North America, significantly increasing flight hours and operational costs. This situation caused the airline to suffer serious financial losses.
Air India’s losses are also attributed to supply chain delays affecting aircraft deliveries, rising fuel costs from the West Asian conflict and stricter regulatory scrutiny following the June 2025 air crash. The depreciation of the Indian rupee against the US dollar has also increased maintenance and rental costs.
Singapore Airlines’ net profit was significantly halved due to a 25.1% share of Air India’s losses. Singapore Airlines’ earnings from its stake in Air India were $742.4 million in FY26.
Industry analysts suggest that Air India should prioritize fleet replacement with more fuel-efficient aircraft. This can lead to operational efficiency and reduce maintenance and operating costs by 15-20%.
“Singapore Airlines is right to point out that the closure of Pakistani airspace is a specific issue. This is specific to Air India and not other foreign carriers. This remains a significant operational blow,” said Gagan Dixit, senior vice president of aviation, chemicals, oil and gas at Elara Capital.
Singapore Airlines said its net profit fell by more than half in FY26, mainly due to share of losses at the Tata Group-owned Indian carrier. Singapore Airlines’ earnings from its stake in Air India amounted to $742.4 million (Singapore $945.2 million), calculated at Thursday’s exchange rates.
The closure of Pakistani airspace means longer flight hours for Indian airlines to Europe and North America. This affected their operational costs. In October, Air India chief Campbell Wilson said losses from a year-long closure of Pakistani airspace were approx. ₹4,000 crore.
Air India is expected to report a loss of around $3 billion (S$3.76 billion), or roughly, according to Singapore Airlines’ annual report filed on Thursday. ₹28,400 crore in FY26, almost three times that of FY25.
air crash
The Singapore-based carrier also cited Air India’s air crash in June 2025; this accident resulted in stricter regulatory scrutiny and additional safety inspections. Additionally, the depreciation of the Indian rupee against the US dollar and the resulting increase in maintenance and rental costs paid in US currency also affected Air India’s performance.
“The June crash and the regulatory review affected Air India’s agility,” said Elara Capital’s Dixit. “Interestingly, Singapore Airlines also sees the weakening of the rupee against the dollar as an important reason.”
There were two other global issues the Singapore-based airline mentioned in its investor presentation: supply chain disruptions causing delays in fleet renewal and cabin refurbishment, and the West Asian war that has increased fuel costs, disrupted routes and impacted markets.
Goh considered these “definitely headwinds” and classified them as “external factors”.
Dixit said Air India may not have the bandwidth to increase airfares on international routes, which are up 40 percent on an annual basis, and domestic routes, which are up 15 percent. Singapore Airlines should have pressured Air India to replace its fleet to improve operational efficiency.
“But the airline also needs a new fleet, faster deliveries from Boeing and Airbus. A fuel-efficient fleet reduces maintenance and operating costs by 15-20%,” Dixit said.
Operational challenges
The past 12 months have been tough for the Tata Group-owned airline, which continues to face mounting losses amid a host of operational challenges. As part of cost-cutting measures, the airline canceled some international routes and postponed salary increases and bonuses for staff.
The airline is in the midst of a leadership transition, with CEO Wilson resigning in March and serving his notice period. Air India is yet to announce his successor.
Singapore Airlines has maintained that Air India is part of its global multi-hub strategy.
“We are committed to supporting Air India’s transformation,” Goh said.
He said SIA has been operating in India for a long time and knows how difficult it is.
“But this is a market with huge potential,” he said. “Now (India’s) potential is even clearer.”
Goh did not specify a timeline for Air India’s turnaround or Singapore Airlines’ plans to add new capital.
“It needs to be seen whether Air India has made concrete progress or improvements. As shareholders, you can be sure that we will monitor this very closely. At the same time, we will support them as much as we can during the transformation process,” he said.
Goh, who is on the seven-member board chaired by N Chandrasekaran, said a call will be taken by Air India’s board on Wilson’s succession.
