Daijiworld Media Network - New Delhi
New Delhi, Nov 4: Air India is planning to expand its widebody aircraft fleet, restructure its international network and cut operating costs as it seeks to return to profitability after reporting losses of more than Rs 22,000 crore in 2025-26.
The airline's revival strategy was outlined by its new CEO and Managing Director, Tewolde Gebremariam, at the Aviation India and South Asia 2026 conference in New Delhi on Tuesday. In his first public appearance since taking charge last month, Gebremariam acknowledged that the airline was “punching below its weight” but expressed confidence in its growth prospects.
“I am more impatient than the shareholders to turn Air India profitable,” he said, underlining profitability as an immediate priority despite the opportunities offered by India's expanding aviation market.
Air India currently operates 171 aircraft, including 61 widebody planes comprising Airbus A350s and Boeing 787s and 777s. The airline has placed orders for around 600 aircraft, with approximately 540 yet to be delivered. Nearly 70 of the pending orders are for widebody aircraft.
Despite its existing orders, the airline is considering additional widebody aircraft to strengthen international connectivity and increase its share of overseas traffic.
Gebremariam said full-service widebody operations offered greater growth opportunities, while its low-cost subsidiary, Air India Express, would also continue expanding. The two airlines are being positioned to serve different customer segments while sharing corporate functions and infrastructure to improve efficiency.
The CEO also cited external challenges, including high fuel prices, geopolitical tensions in the Middle East and Pakistan's continued closure of its airspace to Indian carriers, as factors affecting the airline's operations.
The airspace restrictions have particularly affected flights connecting Delhi with Europe and the United States, creating additional challenges for long-haul services. Gebremariam said Delhi had been more severely affected than Mumbai.
As part of its network restructuring, Air India plans to shift some operations to Mumbai and develop Bengaluru as its third operational hub, alongside Delhi and Mumbai.
The airline has also formed a multidisciplinary team to identify areas where expenditure can be reduced. In October, Gebremariam urged employees to adopt a culture of frugality and accountability, stressing the need for cost control and better coordination between Air India and Air India Express.
The latest strategy builds on the restructuring undertaken since the Tata Group took ownership of the airline, including major aircraft orders, brand consolidation and efforts to improve operational performance.
Gebremariam said the aim was to build on the progress already made and take the airline into its next phase of transformation. He also expressed confidence that India could emerge as a global aviation hub with timely and appropriate decisions.
The immediate challenge for Air India, however, remains converting its expansion plans and operational changes into sustainable profitability.