Air India cuts some flights, denies suspending all international routes

Air India has reduced frequencies on some international routes for three months due to high costs but refuted rumours of a total suspension. CEO Campbell Wilson cited challenges like high jet fuel prices and called for cost-cutting measures.

Air India has reduced frequencies on some international routes for the next three months amid rising jet fuel costs and continuing geopolitical disruptions, as per sources. However Air India has strongly refuted reports alleging that it has suspended all international flights until July due to fuel shortages, calling the rumours "malicious" and "completely false."

In a statement issued on X, the airline clarified that its international operations remain fully functional and that no blanket cancellation of overseas services has been announced.

External Challenges and Cost Pressures

Last week, Air India CEO Campbell Wilson, during the airline's town hall meeting, alongside key executives, CHRO (Chief Human Resources Officer) Ravindra Kumar GP and CFO Sanjay Sharma, outlined the significant external challenges facing the aviation industry and their impact on Air India. These include the continued closure of Pakistani airspace, which is expected to persist for the foreseeable future, geopolitical conflicts leading to disruptions and airspace closures across West Asia, a sharp depreciation of the rupee, and a 2.5x-3x increase in jet fuel prices. Collectively, these factors have adversely affected travel sentiment and consumer confidence. Jet fuel, which constitutes a substantial portion of operating costs, remains highly volatile, adding to cost pressures on international operations.

Call for Cost Discipline

Emphasising the need for discipline in the current environment, Wilson called for a relentless focus on costs. "We need to focus relentlessly on our costs in these tough times," he said. He urged employees to suspend discretionary spending, renegotiate rates where feasible and defer non-critical expenditures. "There must be a laser-sharp focus on eliminating wastage and leakages," he said, while underlining the importance of continuing to improve customer experience as reflected in the Net Promoter Score (NPS) in a cost-conscious manner.

Employee Compensation and Promotions

Sources also shared that CHRO Ravindra Kumar GP said that Air India will proceed with variable pay for the last financial year and continue with planned promotions. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)