US travel demand takes a hit; confident about long-term prospects: Air India CEO

Air India, a key player in the Indian aviation sector, acknowledges a temporary decline in travel demand to the United States. CEO Campbell Wilson attributes this dip to a confluence of factors, including ongoing airspace restrictions that necessitate longer flight times and increased refueling stops, alongside persistent visa processing challenges impacting traveler sentiment. Despite these immediate headwinds, Wilson expresses unwavering confidence in the long-term growth trajectory of the US market, characterizing the current slowdown as a transitory phase.

The airline currently operates 51 weekly flights to six North American destinations, including major hubs like Newark, New York, Chicago, and San Francisco, utilizing a mixed fleet of Boeing 777s and Airbus A350s. The operational complexities arising from airspace constraints have added to the challenges, but Air India maintains its strategic focus on North America as a critical international segment. The airline's agility in aircraft deployment allows it to navigate these short-term market fluctuations effectively.

Central to Air India's long-term strategy is a significant fleet modernization program. The airline is actively reducing its Boeing 777 fleet, with some leased aircraft being returned and owned units slated for retirement. This strategic reduction paves the way for the integration of new, more fuel-efficient Boeing 787s and Airbus A350s, which are expected to form the backbone of its future wide-body operations. This fleet transformation underscores Air India's commitment to enhancing operational efficiency and passenger experience.

Beyond fleet adjustments, Air India's leadership also highlights the broader ambition for India to elevate its standing in global aviation. Wilson emphasizes that any policy initiatives from the Indian Government that facilitate this growth are in the national interest, signaling a desire for supportive regulatory frameworks to bolster the country's aviation footprint on the international stage.