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DNA Edit: Open skies - Economic motives behind Pak lifting airspace ban

Pakistan’s decision to lift the ban on Indian aircraft overflying its space, should be considered a thoughtful move – a move dictated by economics rather than politics.

DNA Edit: Open skies - Economic motives behind Pak lifting airspace ban
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The air is clearer now. One hundred and forty days after Pakistan’s decision to close its air space on February 27 following the IAF strike on Balakot, status quo has been restored.

Pakistan’s decision to lift the ban on Indian aircraft overflying its space, should be considered a thoughtful move – a move dictated by economics rather than politics. By reverting to the status quo, many things will fall into place.

Travel time between Delhi and the West will go down by nearly four hours, while flights going to the US can re-start operating non-stop. In the ban period, Indian flights to the West and back were forced to take a much longer route, which meant greater travel time and huge rise in expenses incurred by airlines.

According to India’s civil aviation minister, Indian carriers lost a whopping Rs 550 crore, of which Air India was the major loser. But loss of revenue was greater for a fragile economy like Pakistan. Operations of around 400 flights a day were affected due to closure of airspace by Pakistan, which earns good money from route navigation and airport charges levied on flights using its airspace for landing, maintenance or refuelling.

For a regular Boeing 737 passenger aircraft, Pakistan charges around $600-$700 a day for allowing use of its airspace for terminal navigation and landing. For about 400 flights using its airspace, Pakistan could be roughly earning around $300,000 a day.

Besides, Pakistan’s aviation sector has high demand for destinations in South and Southeast Asia. According to one estimate, Pakistan International Airlines (PIA) suffered more than $450,000 a day due to closure of Indian airspace for its use as flights to places like Kuala Lumpur and Bangkok were suspended. An available longer route made PIA flights unviable. Economics, at the end of the day, has prevailed.

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