The continuing ban for Indian airlines in using Pakistani airspace is adding flying hours for non-stop flights and will weigh down Air India's path to profitability, the company's Chief Executive Officer Campbell Wilson said in a Bloomberg TV interview Monday.
“The impact is significant but we have been able to sustain non-stop operations” to most destinations in North America and Europe, Wilson said. “It’ll certainly hit our bottom line.”
The airspace curbs have increased flying time for west-bound flights from India by an hour or so, according to Wilson, who declined to give details on the discussions the Tata Group-owned carrier was having with stakeholders on this front.
India launched Operation Sindoor in the early hours of May 7, targeting nine terror camps in Pakistan. The operation was in retaliation to the April 22 terror attack in Pahalgam. The Indian Air Force conducted precise strikes on key Pakistani airbases, including Nur Khan and Bholari, exposing weaknesses in Chinese-supplied defence systems.
In response, Pakistan attempted to strike Indian military sites on May 8, 9, and 10. India retaliated by hitting several key Pakistani military assets such as radar sites, air defence systems, and command centres.
On the evening of May 10, Foreign Secretary Vikram Misri said both countries agreed to an immediate halt to all military actions across land, air, and sea.
Geopolitical strife has been complicating flying routes and business models for airlines globally in the past few years as they skirt conflict zones. Tariffs are also now a closely watched development for the sector.
“We want certainty. Uncertainty is difficult when you are making investment decisions,” Wilson said, adding that this was a common theme at the ongoing aviation industry event in New Delhi. So far, Air India sees no impact of tariffs on travel flows for its geography and markets.
The recent showdown between the US President Donald Trump and Harvard University has added another layer of complication for international fliers especially those looking to study in American institutions.
Pointing to anecdotal stories, Wilson said that there seems to be some shift in the large student population from India that usually vies to be on US campuses.
“You hear people thinking of alternatives,” he said. “Obviously, it’s a relatively new development, so people are still digesting it but it does seem that people are more willing to look at alternative locations than perhaps they were before.”
Air India, the unprofitable carrier which the Tata conglomerate acquired from the Indian government in 2021, will start receiving new planes it had ordered toward the end of this year, according to Wilson.
The deliveries are “later than we hoped, slower than we hoped,” he said. “It is constraining our ambitions a little bit in the short term but the long term opportunity for this market is massive, so we are very, very confident.”
(With Bloomberg inputs)
“The impact is significant but we have been able to sustain non-stop operations” to most destinations in North America and Europe, Wilson said. “It’ll certainly hit our bottom line.”
The airspace curbs have increased flying time for west-bound flights from India by an hour or so, according to Wilson, who declined to give details on the discussions the Tata Group-owned carrier was having with stakeholders on this front.
India launched Operation Sindoor in the early hours of May 7, targeting nine terror camps in Pakistan. The operation was in retaliation to the April 22 terror attack in Pahalgam. The Indian Air Force conducted precise strikes on key Pakistani airbases, including Nur Khan and Bholari, exposing weaknesses in Chinese-supplied defence systems.
In response, Pakistan attempted to strike Indian military sites on May 8, 9, and 10. India retaliated by hitting several key Pakistani military assets such as radar sites, air defence systems, and command centres.
On the evening of May 10, Foreign Secretary Vikram Misri said both countries agreed to an immediate halt to all military actions across land, air, and sea.
Geopolitical strife has been complicating flying routes and business models for airlines globally in the past few years as they skirt conflict zones. Tariffs are also now a closely watched development for the sector.
“We want certainty. Uncertainty is difficult when you are making investment decisions,” Wilson said, adding that this was a common theme at the ongoing aviation industry event in New Delhi. So far, Air India sees no impact of tariffs on travel flows for its geography and markets.
The recent showdown between the US President Donald Trump and Harvard University has added another layer of complication for international fliers especially those looking to study in American institutions.
Pointing to anecdotal stories, Wilson said that there seems to be some shift in the large student population from India that usually vies to be on US campuses.
“You hear people thinking of alternatives,” he said. “Obviously, it’s a relatively new development, so people are still digesting it but it does seem that people are more willing to look at alternative locations than perhaps they were before.”
Air India, the unprofitable carrier which the Tata conglomerate acquired from the Indian government in 2021, will start receiving new planes it had ordered toward the end of this year, according to Wilson.
The deliveries are “later than we hoped, slower than we hoped,” he said. “It is constraining our ambitions a little bit in the short term but the long term opportunity for this market is massive, so we are very, very confident.”
(With Bloomberg inputs)
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