Air India expects to face around $600 million in additional costs if a ban from Pakistan's airspace lasts for a year, and has asked the federal government to compensate it for the hit, a company letter seen by Reuters shows.

Bilateral airspace pact between India and Pakistan sets clear rules to prevent aerial conflict and foster military transparency. Here’s a look at the agreement in detail

The airspace closure means Pakistani planes cannot fly over India, and vice versa. This leads to longer flight routes and increased costs for airlines. Flights must be rerouted, which raises fuel consumption and operational expenses. This move is a response to rising tensions between the two countries.