More widebody aircraft, regain market share, cost cutting: Inside Air India CEO’s turnaround plan for the carrier

Tata-owned carrier Air India is planning to add more widebody aircraft to its fleet, its CEO, Tewolde Gebremariam, announced at an aviation event in New Delhi on Tuesday, marking a substantial shift in the company's strategy as he pushes to reclaim market share and target long-term growth, Bloomberg reported.

On plans to order more widebody aircraft, Tewolde said, "We have many of them, but we need more.” He, however, did not specify how many widebody aircraft the carrier is seeking.

Currently, Air India has 171 aircraft, including 61 widebody planes, PTI reported. The carrier already has orders for around 80 widebody aircraft from Airbus SE and Boeing. However, deliveries of new long-haul planes remain heavily constrained across the aviation industry, meaning any additional orders would likely not begin arriving for several years.

Quick answers to key questions

•5 QUESTIONS

1

Why is Air India considering adding more widebody aircraft?⌵

Air India wants to expand its long-haul international operations and regain market share. CEO Tewolde Gebremariam said the airline needs more widebody planes, but did not specify how many or when they might be ordered.

2

Why is Air India shifting some Europe and North America flights to Mumbai?⌵

Pakistan’s airspace closure has forced longer routes for many westbound flights, increasing fuel use and operating costs. Air India is considering moving more Europe and North America operations to Mumbai while Delhi anchors growth in Asian markets.

3

How does Air India plan to reduce costs and improve profitability?⌵

The airline is focusing on operational efficiency, better fleet use and changes to its network. It is also working to coordinate Air India and Air India Express more closely to improve efficiency and resource use.

4

Why has Air India suspended some international flights?⌵

Rising jet fuel costs and airspace restrictions have put pressure on international operations. Air India has said some changes are intended to improve network stability and reduce last-minute inconvenience for passengers.

5

How long could Air India’s turnaround take?⌵

Gebremariam said rebuilding the airline could require a 15- to 20-year commitment, reflecting the scale of the long-term growth opportunity. He said this was not the expected time to reach profitability, which he described as an immediate priority.

The remarks reflect a change in Air India’s priorities over the past year. Following privatisation, the airline pursued aggressive growth and ordered roughly 600 aircraft. However, owner Tata Sons Pvt. asked it to scale back its expansion plans after it reported record losses in the last fiscal year.

Since taking over in September, Tewolde has secured renewed shareholder backing for Air India’s long-term expansion plans, with a particular focus on widebody aircraft needed to compete on international routes.

Speaking at the event, he said the Tata Group has given management the flexibility to plan as far as two decades ahead. Tewolde added that losses are a short-term challenge and that the airline will return to profitability “soon.”

Expanding on his revival plans for the airline, Tewolde said the carrier is punching below its weight, adding that this will change. As part of the strategy, he said efforts are underway to get Air India and Air India Express to work more closely together to improve efficiency and synergy.

Air India's new CEO has also launched broad efforts to reduce losses while improving revenue and operational performance, the Bloomberg report added.

Air India reported a record loss exceeding ₹22,000 crore ($2.3 billion) in the last fiscal year. Air India is seeking ₹10,000 crore from its owners, Tata Sons and Singapore Airlines Ltd. Both shareholders have faced scrutiny over providing additional capital. Higher fuel costs and the closure of Pakistani airspace have added to the pressure on the airline’s long-haul operations.

He said, "We have the unique problem of the Pakistan airspace closure... but I put all these problems as short-term headwinds or turbulence that we need to navigate so that we emerge stronger for our future, for the long-term future growth."

Stressing that reducing costs is a priority, Tewolde said several measures are underway, including adjustments to the airline’s network. “Most of our network, unfortunately, in Europe and America, has been affected by the airspace closure. So, Delhi is more affected than Mumbai.”

However, it remains to be seen whether Tewolde will be able to bring changes to the loss-making airline and turn its fortunes around.

(with inputs from agencies)

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.

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