Air India CEO Discusses Potential Order for More Wide-Body Aircraft Driven by AI Insights

NEW DELHI: Air India is contemplating a new order for wide-body aircraft as part of its strategy to reclaim market share from competitors. CEO Tewolde Gebremariam stated that the airline has “punched below its weight” for too long and aims to improve its position in the industry. He emphasized the need to focus on boosting revenue, cutting costs, and enhancing efficiency to achieve profitability in the near future.

Gebremariam acknowledged the challenges facing the airline in the short term but expressed optimism about long-term opportunities. He highlighted the commitment of Tata Group, which owns Air India, to see the airline thrive. The CEO noted that while profitability remains a concern, the airline is determined to navigate current difficulties while planning for future growth.

Air India reported a record loss of Rs 22,238 crore last fiscal year, with total losses exceeding Rs 58,000 crore since Tata’s acquisition in January 2022. This financial strain has raised concerns among stakeholders, including Tata Sons and Singapore Airlines, prompting discussions about new funding. The airline is also addressing operational challenges, such as the ongoing closure of Pakistan’s airspace, which affects flight routes.

To tackle these issues, Air India has established multifunction cost teams aimed at increasing operational efficiency. Gebremariam mentioned efforts to enhance synergy between Air India and its subsidiary, AI Express, to streamline functions and reduce costs. The airline is also rebalancing its hub network in response to the airspace closure, adding more flights from Mumbai to the West and expanding services from Delhi to South and Southeast Asia.

Currently, Air India has around 600 aircraft on order from Airbus and Boeing, with only 80 designated as wide-body. Gebremariam indicated a potential increase in wide-body orders to meet the growing demand from the Indian diaspora and improve overall service. He believes that India has the potential to establish global hubs in cities like Delhi, Mumbai, Hyderabad, and Bengaluru, and that Air India must enhance its offerings to regain market share from foreign competitors.