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Air India losses Rs 4.91bn due to closure of Pakistan airspace

DUE to the closure of airspace by Pakistan, national carrier Air India lost Rs 4.91 billion till July 2, according to data presented by country's civil aviation minister Hardeep Singh Puri in Rajya Sabha (lower house) on Wednesday (3).

Private airlines SpiceJet, IndiGo and GoAir lost Rs 307.3 million, Rs 251m and Rs 21m, respectively, the data stated.


Pakistan closed its airspace after the Indian Air Force’s (IAF) February 26 Balakot strike. Since then, it has only opened two of 11 air routes and both of them pass through southern Pakistan.

On its part, the IAF announced on May 31 that all temporary restrictions imposed on Indian airspace post the Balakot strike have been removed.

However, it is unlikely to benefit any commercial airliners unless Pakistan reciprocates and opens its complete airspace.

In a written response, Puri said," The airspace closure by Pakistan is a unilateral measure that followed the non-military counter-terrorism airstrike by the Indian Air Force against terror camp in Balakot in Pakistan in February 2019. It is for Pakistan to decide."

Post the airstrike, Air India had to re-route, merge or suspend many of its international flights that connect India with European and the US cities.

IndiGo, India's largest airline by share in the domestic passenger market, has been unable to start direct flights from Delhi to Istanbul due to the closure of Pakistani airspace.

The low-cost carrier started the Delhi-Istanbul flight in March.

This flight has to take the longer route over the Arabian Sea and make a stop at Doha in Qatar for refuelling.

(PTI)

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The mayor of London has welcomed reports that he will soon be allowed to introduce a tourist levy on overnight visitors, with new analysis outlining how a charge could work in the capital.
Early estimates suggest a London levy could raise as much as £240 m every year. The capital recorded 89 m overnight stays in 2024.

Chancellor Rachel Reeves is expected to give Sadiq Khan and other English city leaders the power to impose such a levy through the upcoming English Devolution and Community Empowerment Bill. London currently cannot set its own tourist tax, making England the only G7 nation where national government blocks local authorities from doing so.

A spokesperson for the mayor said City Hall supported the idea in principle, adding “The Mayor has been clear that a modest tourist levy, similar to other international cities, would boost our economy, deliver growth and help cement London’s reputation as a global tourism and business destination.”

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