/images/ppid_59c68470-image-179369258170214048.webp)
/images/ppid_59c68470-image-179369252925392115.webp)
What is the story about?
Air India's full transformation could take more than 15-20 years, CEO Tewolde Gebremariam said at Aviation India 2026, describing the airline's turnaround as a long-term story even as it navigates near-term financial and operational challenges.
"Air India is a long-term story," Gebremariam said, adding that while the airline faces losses and profitability remains a concern, it also has significant opportunities for growth over the longer term.
He described the transformation as a daunting challenge but said he could see a clear pathway for growth and opportunity. He also pointed to the Tata Group's track record, calling it one of the success stories in the world.
Drawing a comparison with his experience at Ethiopian Airlines, Gebremariam said Air India is now a privately owned company, whereas Ethiopian was government-owned. He said government ownership was neither inherently good nor bad.
Air India faces near-term headwinds, profitability remains a concern
Gebremariam said the airline is dealing with several near-term challenges, including high fuel prices, tensions in the West Asia and the closure of Pakistani airspace, which is affecting its operations.
He described these as short-term headwinds that the airline needs to navigate, while reiterating that the long-term opportunity remains significant.
Profitability remains a key concern for Air India, he said, highlighting the need to improve its cost and revenue performance.
"We need to work on CASK. CASK for us is greater than RASK," he said, pointing to the need to bring costs down and improve revenue per available seat kilometre.
Also Read: Air India’s new CEO launches cost-cutting drive, tightens spending rules, sets up savings team
Air India looks to rebalance network, explore Bengaluru as third hub
As part of its network strategy, Air India will look to rebalance certain parts of its network, including Delhi.
The airline also plans to add more flights to Europe and North America from Mumbai. It is exploring Bengaluru as a potential third hub, Gebremariam said.
The network changes are part of the airline's broader efforts to improve operations, strengthen revenue and work towards profitability as it undertakes a long-term transformation.
Also Read: New airfare rules: Centre gets power to step in during extraordinary situations, here's what changes
"Air India is a long-term story," Gebremariam said, adding that while the airline faces losses and profitability remains a concern, it also has significant opportunities for growth over the longer term.
He described the transformation as a daunting challenge but said he could see a clear pathway for growth and opportunity. He also pointed to the Tata Group's track record, calling it one of the success stories in the world.
Drawing a comparison with his experience at Ethiopian Airlines, Gebremariam said Air India is now a privately owned company, whereas Ethiopian was government-owned. He said government ownership was neither inherently good nor bad.
Air India faces near-term headwinds, profitability remains a concern
Gebremariam said the airline is dealing with several near-term challenges, including high fuel prices, tensions in the West Asia and the closure of Pakistani airspace, which is affecting its operations.
He described these as short-term headwinds that the airline needs to navigate, while reiterating that the long-term opportunity remains significant.
Profitability remains a key concern for Air India, he said, highlighting the need to improve its cost and revenue performance.
"We need to work on CASK. CASK for us is greater than RASK," he said, pointing to the need to bring costs down and improve revenue per available seat kilometre.
Also Read: Air India’s new CEO launches cost-cutting drive, tightens spending rules, sets up savings team
Air India looks to rebalance network, explore Bengaluru as third hub
As part of its network strategy, Air India will look to rebalance certain parts of its network, including Delhi.
The airline also plans to add more flights to Europe and North America from Mumbai. It is exploring Bengaluru as a potential third hub, Gebremariam said.
The network changes are part of the airline's broader efforts to improve operations, strengthen revenue and work towards profitability as it undertakes a long-term transformation.
Also Read: New airfare rules: Centre gets power to step in during extraordinary situations, here's what changes
/images/ppid_59c68470-image-179385252805849206.webp)
/images/ppid_59c68470-image-17936100525967900.webp)
