Air India CEO and MD Tewolde Gebremariam on Tuesday said the airline is facing multiple operational and financial headwinds, including a sharp rise in fuel
prices, geopolitical tensions in the Middle East and the closure of Pakistani airspace. "We have unique problem of the airspace closure here in the Pakistan airspace closure. That is affecting us and our competitors, they are not affected by the same problem. But I put these all 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," he said. He said rising fuel costs were an industry-wide concern, with airlines currently facing fuel prices that are more than double the levels seen a year ago. Geopolitical developments in the Middle East are also affecting carriers, either directly or indirectly, adding to the pressure on the aviation industry. The combination of airspace restrictions, geopolitical uncertainty and elevated fuel costs is expected to prompt Air India to recalibrate its network and reassess its operations, he said. The comments come at a time when Indian airlines are grappling with higher operating costs and disruptions to international flight routes amid geopolitical uncertainties and elevated aviation fuel prices.
Air India plans to shift larger share of international operations to Mumbai:
Gebremariam further said Air India is planning to shift a larger share of its international operations to Mumbai from Delhi.
The airline's chief executive said Delhi has been more significantly affected by the airspace restrictions compared to Mumbai. While Delhi will continue to remain an important hub, Air India plans to move more of its Europe and America-bound operations to Mumbai. The airline will, however, continue to operate flights to these destinations from Delhi as well.
The CEO said the eastern and southeastern parts of Air India's network have remained relatively unaffected by the airspace restrictions, and the airline expects much of its growth in these regions to be centred around Delhi.
Air India is also exploring Bengaluru as a potential third hub to strengthen its domestic and international network. The CEO said the airline is working to expand its international sales force and points of sale, while rebalancing its business between international and domestic markets.
The move is part of Air India's broader efforts to restructure its international network, improve operational efficiency and build stronger connectivity across different regions of the country.
