Air India is looking to shift more of its Europe- and US-bound flights from Delhi to Mumbai as it rebalances its international network amid ongoing airspace restrictions. Chief Executive Tewolde Gebremariam outlined the plan at the Aviation India Summit on Tuesday.
The closure of Pakistani airspace has affected Delhi more than Mumbai, prompting the airline to reassess its hub strategy. Air India will continue operating flights to Europe and America from Delhi, but more will move to Mumbai.
“Most of our network, unfortunately, in Europe and America, has been affected by the airspace closure. Delhi is more affected than Mumbai. So rebalancing the hub means... we still have, we continue to have Europe and America flights from Delhi, but more will be moving to Mumbai,” Gebremariam said.
The airline is exploring Bengaluru as a potential starting point for some international operations, given India's geographical scale.
The realignment comes as Air India seeks to improve its financial performance and reduce costs. Gebremariam said profitability remained an immediate priority, with the airline working to lower its cost per available seat kilometer (CASK) and improve operational efficiency.
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Gebremariam said the larger long-term growth opportunity lay in full-service wide-body operations. However, Air India Express, the group's low-cost carrier (LCC), would also expand.
“More growth may come from the full-service wide-body long-term because the opportunity there is much bigger. But again, on the LCC also, on Air India Express, there is growth. We are going to grow that also,” he said.
The airline plans to position its two brands for different customer segments. Air India Express will serve the lower end of the market, while Air India will focus on full-service domestic, short-haul and long-haul travel. The latter will also be progressively premiumized.
Gebremariam, who led Ethiopian Airlines for 11 years, said Air India had undertaken foundational work in fleet renewal, maintenance infrastructure and training facilities. His immediate focus is to build on these investments while addressing near-term financial challenges.
Air India also aims to regain its share of traffic between India and the rest of the world, while developing hub-and-spoke connectivity and domestic-to-international passenger flows.