Air India bets big on global expansion, CEO signals more widebody orders

Tata-owned Air India is prioritising profitability in the near term while pursuing international expansion as part of its long-term strategy. The airline is also in talks to order more widebody aircraft to offer international passengers a premium product, says CEO Tewolde Gebremariam.

Speaking at the Aviation India Summit, Gebremariam said Air India was underrepresented in the international market despite strong demand. In February 2023, the airline ordered 470 aircraft from Airbus and Boeing, including widebody aircraft.

Don't Miss: Adani finds a way around airline resistance: IndiGo, Air India to begin shift to Navi Mumbai

“We want to increase our order of widebody aircraft. Our network demand is higher, but we have not served the market because of current problems. We have reduced frequency from European stations, Chicago, San Fransico, Washington. As soon as we are out of it, we will deploy aircraft on these sectors as the Indian diaspora wants Air India,” said Gebremariam, who took over Air India's reins in August this year.

Known in the industry for turning around Ethiopian Airlines, he said restoring Air India to its former glory would take 15–20 years.

“One of our eyes is squarely focused on today and the second eye on the future. Profitability is an issue as our cost per available kilometre (CASK) is higher than revenue per available kilometre, and this needs to be corrected. I am more impatient than shareholders to become profitable,” he said. 

Read More: Largest Indian airline’s overseas market share falls. Here’s why…

The CEO said Air India was rebalancing its network by shifting more westbound flights from Delhi to Mumbai and Bengaluru because of the closure of Pakistan’s airspace. He also outlined internal efficiency measures to reduce costs.

Air India incurred losses of Rs 22,000 crore in FY26 and has sought additional funding from its investors, Tata Group and Singapore Airlines, amid operational challenges stemming from high fuel costs, the closure of Pakistan’s airspace and geopolitical uncertainty.