Singapore Airlines CEO Discusses Air India's External Challenges
Air India's challenges 'largely external': Singapore Airlines CEO
Business Standard
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Singapore Airlines CEO Goh Choon Phong highlighted that Air India's transformation faces significant external challenges, including airspace closures and currency depreciation. Despite a reported loss of over SGD 3.56 billion (approximately ₹26,700 crore) for the fiscal year, he emphasized the long-term growth potential in India's aviation market.
- 01Air India reported a loss of over SGD 3.56 billion (approximately ₹26,700 crore) for the fiscal year ended March 2026.
- 02Key challenges include supply chain disruptions, the closure of Pakistan's airspace, and the depreciation of the Indian rupee.
- 03Air India has hired more than 14,000 employees since 2022, reducing the average age of its workforce from 54 to 36 years.
- 04The closure of Pakistan airspace has led to increased operating costs and longer flight routes for Air India.
- 05The transformation of Air India is described as a 'long game' with no shortcuts, according to Goh Choon Phong.
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Air India's ongoing transformation is a complex process, according to Goh Choon Phong, CEO of Singapore Airlines, which holds a 25.1% stake in the carrier. He noted that the airline is facing several significant external challenges, including the prolonged closure of Pakistan's airspace, which has resulted in flight route disruptions and increased operational costs. For the fiscal year ending March 2026, Air India reported a staggering loss of over SGD 3.56 billion (approximately ₹26,700 crore), contributing to Singapore Airlines' overall decline in net profit by 57.4%. Goh emphasized the strategic importance of investing in Air India, which allows Singapore Airlines to tap into India's rapidly growing domestic and international markets. Since 2022, Air India has made strides in its transformation, hiring over 14,000 new employees and significantly lowering the average age of its workforce. Despite these efforts, Goh reiterated that the journey ahead is long and challenging, with no immediate solutions to the airline's struggles.
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The challenges faced by Air India could lead to increased ticket prices and operational inefficiencies, affecting travelers and the broader aviation market in India.
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