Air India CEO Plans to Boost International Operations
Tewolde Gebremariam outlines strategies to enhance profitability and expand fleet amid ongoing challenges.
Air India aims to increase its wide-body aircraft order to strengthen international operations.
The airline reported a significant loss of $2.3 billion for the fiscal year 2025-26.
CEO emphasizes a culture of frugality and accountability to manage costs effectively.
Air India is set to expand its fleet of wide-body aircraft as part of a strategic initiative to enhance its international operations and improve financial performance, according to CEO Tewolde Gebremariam. Speaking on Tuesday, Gebremariam acknowledged that the airline is currently underperforming in the global market, stating, "Air India has been punching below its weight, that will change." He expressed optimism about the airline's path to profitability, asserting that a turnaround is expected to occur "very soon."
The CEO highlighted the airline's progress in fleet renewal but also pointed out persistent challenges, including significant losses, airspace disruptions, and escalating operational costs. He specifically mentioned that the cost per available seat kilometer is a primary concern for the airline. In response to these challenges, Air India plans to reassess its hubs and network to optimize operations.
In a recent development, Gebremariam established a dedicated "multidisciplinary, cross-functional cost savings team" to systematically identify and implement cost-reduction strategies across the airline. This initiative comes in light of Air India's reported loss of approximately $2.3 billion for the fiscal year 2025-26, marking its largest annual loss since the Tata Group took over the airline in January 2022. Cumulatively, the airline's losses have reached around $5.7 billion since the acquisition.
In an internal message to employees, Gebremariam urged a shift towards a mindset of frugality, accountability, and careful decision-making. He emphasized that while many external factors affecting the airline are beyond its control, employees play a crucial role in managing costs through their daily decisions. This approach aims to foster a culture of responsibility and efficiency within the organization.
Looking ahead, Gebremariam believes that India has the potential to emerge as a global aviation hub if the right strategies are implemented at the right time. As Air India navigates these challenges, the focus will remain on enhancing operational efficiency and achieving financial stability in the competitive airline industry.
