Air India may reverse flight cuts: CEO
Air India CEO Campbell Wilson on Friday said the airline might be able to wind back some of the network reductions, provided the trend of easing of airspace curbs and moderating fuel prices continues due to the abating West Asia conflict.
Last month, the Tata Group-owned airline announced a 27 per cent reduction in international flights amid airspace curbs, as well as costlier jet fuel, which has pushed operational costs higher for overseas sectors.
Besides, the loss-making carrier has temporarily cut 22 per cent of its domestic flights as the loss-making airline grapples with the impact of the high fuel prices.
“...the Middle East conflict has abated and, though there's no guarantee it won't re-escalate, the more stable environment has allowed more airspace to become available and fuel prices to significantly moderate.
“Should this trend continue, we may be able to wind back some of the schedule reductions we'd taken in recent months — and I'm sure you all join me in hoping for this sooner than later,” Wilson said in a message to the staff.
In the wake of the West Asia turmoil, there have been airspace curbs in the region, and also the fuel prices have surged. The fuel prices, which account for over 40 per cent of the airline's operational costs, have moderated now.
Wilson, who is the CEO and MD, also said that around eight more new or retrofitted wide-body aircraft would enter service this year, including a new B787-9 arriving this weekend.
With these aircraft, “we can look forward to continued upgradation and positive feedback”, he added.
According to him, the airline's overall OTP (On Time Performance) improved to 86 per cent in June.
