Short-term impact of India-Pak actions not too significant

After the terrorist attacks on tourists at Pahalgam in Kashmir, several diplomatic and economic measures have been taken by India and Pakistan with intent to hurt the other.

- T N C RAJAGOPALAN

In the short run, these steps may cause very little easily bearable pain.

Pakistan has barred all Indian-registered airlines and aircraft owned or leased by Indian operators from entering its airspace. Indigo, Air India, and SpiceJet will now have to take a longer route from north Indian airports to the west, incurring more costs. For a while, they can absorb the costs and later, even pass on some burden to the domestic travelers. The exporters and importers can use foreign-owned airlines, which are not affected and so, may not pay higher freight costs.