NEW DELHI: Air India CEO Tewolde Gebremariam said the airline was considering rebalancing its hubs and restructuring its international operations to mitigate the impact of Pakistan's airspace closure.
“We have a unique problem with the closure of Pakistani airspace. It is affecting us, but our competitor is not impacted,” he said, pointing out that the airline's routes to Europe and the US had been affected. Gebremariam was speaking at the Aviation India and South Asia 2026 event at Aerocity on Tuesday.
New Delhi has been more severely affected than Mumbai. “Rebalancing the hub means moving more of our international operations to Mumbai for Europe and America. Operations will continue from Delhi as well. We are also exploring Bengaluru,” he said.
Air India's operations towards the eastern and south-eastern parts of its network had not been affected by the closure. “So, that growth would be by and large from Delhi,” the CEO said.
India is a fast-growing economy, and its aviation industry is also booming. “India is geographically well positioned to serve other hubs, and there is a huge opportunity going forward,” Gebremariam added.
Responding to a question about the substantial losses being incurred by airlines due to geopolitical tensions, the CEO said the nature of the aviation industry meant that it would always face short-term challenges and headwinds.
“The Air India brand is very strong globally. A lot of foundational work has been done by the airline over the last four years. Our job is to take it to the next stage,” he said.
The airline had the full backing of its shareholders and would regain its market share in the industry, Gebremariam added.
IndiGo CEO Willie Walsh said India had the potential to emerge as a global aviation hub. “The long-term prospects for aviation in India are really exciting,” he said.
Walsh also called for a change in the mindset that airports could make profits, while airlines seeking to do so were looked down upon.
“Financial sustainability is a critical component of any industry,” he added.
Adani Airport Holdings Limited (AAHL) CEO Arun Bansal said it was never a good strategy to compete with one's customers. He was responding to a question about whether the group planned to launch its own airline.
“Mumbai's T1 should be redeveloped by early 2030, and we want it to be on a par with London Gatwick,” Bansal said.
Adani Airports will participate in the bidding process next year for the 11 airports slated for privatisation.
“AAHL airports currently handle 100 million passengers annually, and the number could touch 300 million in 10 years,” he added.
Responding to a question about the steep charges levied by airports, SGK Kishore, Executive Director of GMR Airports, said, “In a growing industry where there is a lot of infrastructure spending, airport charges are likely to increase, but over the years they will come down, as happened in Europe.”
He added, “In emerging markets like India, where huge investments are being made, criticising high airport charges is a myopic view.”
