en.Wedoany.com Reported - Air India, under the direction of the Tata Group, is slowing its growth pace to prioritize reducing losses. Bloomberg, citing sources, reported that the airline is considering delaying aircraft deliveries, further cutting flight capacity, and suspending expansion plans. This strategic shift marks a departure from its previous rapid growth targets.
Air India recently recorded an annual loss of approximately $3 billion. The 787 crash a year ago and ongoing financial pressures are key reasons for the company's strategic adjustment. Rising aviation fuel prices due to the Iran war have further disrupted its business plans.
Air India is cutting its route network. Flights from Delhi to Chicago O'Hare and Delhi to Newark will be suspended for three months, and flights from Mumbai to New York JFK will also be canceled. Additionally, frequencies on the Delhi-San Francisco, Delhi-Toronto, and Delhi-Vancouver routes will be reduced.
The Tata Group has parted ways early with Air India CEO Campbell Wilson. After privatization, Wilson had pursued an aggressive growth strategy and driven fleet renewal as per the new owner's intentions. A successor is currently being sought, with Wilson temporarily overseeing company operations.
According to insiders cited by Bloomberg, Air India is in talks with Airbus and Boeing to extend the delivery timeline for up to 500 ordered aircraft. By delaying deliveries, advance payments and remaining balances can be deferred to stabilize finances. Air India ordered approximately 600 aircraft from the two manufacturers in 2023 and 2024, and added an additional order for 30 Boeing 737 MAX aircraft earlier this year. Specific orders include 50 A350 series aircraft and 300 A320neo series aircraft, with the A320neo series comprising 90 A320neo and 210 A321neo. In January 2026, Air India adjusted some A321neo orders, with 15 of them scheduled for delivery in 2029 and 2030 as the long-range A321XLR variant. Most deliveries were originally concentrated in 2027 and 2028.
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