New Delhi: Air India is navigating external volatilities while charting a course towards profitability, with plans to introduce more than 100 new aircraft into its fleet over the next two years, according to CEO Campbell Wilson.
Information was available with The Chenab Times that the airline, which has been operating at a loss, is simultaneously undergoing a leadership transition. Tewolde Gebremariam, formerly the chief of Ethiopian Airlines Group, is slated to assume the roles of CEO and Managing Director, succeeding Wilson. The outgoing CEO communicated during a townhall meeting with staff that annual salary increments are scheduled to take effect from October 1. Sources also indicated that the recently revised pay structure for pilots will be implemented on the same date. This follows an earlier deferral of the increment cycle by one quarter, attributed to significant disruptions and cost implications arising from the West Asia turmoil.
Detailing the group’s future fleet expansion, Wilson stated that an anticipated induction of over 100 new planes is planned within the next two years. Furthermore, 16 Boeing 787-8 aircraft are scheduled for retrofitting in 2027. Air India Group, which includes Air India and Air India Express, currently operates a fleet of approximately 300 aircraft. Air India alone manages a fleet exceeding 185 planes, comprising wide-body aircraft such as 35 Boeing 787s, 19 Boeing 777-300 ERs, and 6 Airbus A350-900s. Within the wide-body segment, 26 Boeing 787-8s are legacy models, while three new aircraft of this type were added this year. The airline is also set to receive two new Airbus A350-1000 aircraft in 2026.
Wilson informed employees that the airline continues to achieve steady progress in its transformation initiatives, despite encountering a challenging operational environment. This environment is characterized by geopolitical uncertainties, airspace disruptions, fluctuating fuel prices, and macroeconomic pressures. He highlighted that in the preceding six months, airlines globally have faced considerable headwinds. These include a notable surge in jet fuel prices between March and May, and increased flight times for Indian carriers by up to three hours on various routes to Europe and North America due to the closure of Pakistani airspace. The disruptions stemming from the conflict in Iran have further compounded operational complexities and escalated fuel expenses. Additional industry-wide pressures have arisen from the depreciation of the rupee and softer demand on the India-US corridor, influenced by visa restrictions and trade-related uncertainties.
During periods of temporary network curtailments resulting from airspace restrictions, fleet improvement initiatives have been undertaken, Wilson explained. The recent townhall convened amidst heightened regulatory scrutiny for the airline, following an incident on August 4. The incident involved a Phuket-Delhi flight where the aircraft experienced a sudden 300-foot altitude drop, and the pilot-in-command subsequently tested positive for a psychoactive substance. The Aircraft Accident Investigation Bureau (AAIB) is currently conducting an inquiry into this event. It remains unconfirmed whether Wilson addressed this specific flight incident during the townhall meeting.
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