Air India Expands Fleet, Cuts Costs Under New CEO Tewolde Gebremariam
Air India is expanding its widebody fleet while implementing cost-cutting measures to improve profitability, according to CEO Tewolde Gebremariam.
NEW DELHI, Nov 4: Air India is focused on expanding its fleet of widebody aircraft and reducing operational costs to achieve profitability, according to CEO Tewolde Gebremariam during the Aviation India Summit 2026 in New Delhi.
Gebremariam emphasized the need for more widebody orders, saying, “Our network and strategy demand more widebodies.” Currently, Air India has 80 widebody aircraft on order, including 50 Airbus A350s, 20 Boeing 787s, and 10 Boeing 777Xs. These orders are part of a larger acquisition strategy involving a total of 570 new planes announced in 2023 and 2024 following the airline’s privatization.
The strategy aims to regain international market share, especially from Gulf carriers. Gebremariam stated, “Right now, our immediate focus is to regain market share from the competition on India to the rest of the world.” The airline is also enhancing its international sales force to compete better in global markets.
While both Air India and its budget arm, Air India Express, are set to grow, more significant advancements are expected from the full-service long-haul operations. The airline seeks to capture a larger share of the international market and improve its operational efficiency.
This focus on cost management comes amid reports of significant financial losses, with the Air India Group’s consolidated net loss exceeding ₹6,000 crore in the first quarter of FY27. Gebremariam stressed the need for improved efficiency, stating, “Efficiency, efficiency, efficiency,” as the guiding principle for cost reductions.
The airline’s board recently ratified a consolidation plan to streamline operations across Air India and Air India Express, targeting reductions in duplicated corporate functions, including human resources and finance. However, the CEO did not provide a specific timeline for when the airline expects to return to profitability, saying only, “Very soon, I would say.” He confirmed that shareholders are committed to supporting the airline’s transformation over the long term.
Sources
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.