Air India's A350 engines turning costly? CEO Tewolde Gebremariam looks to reduce soaring maintenance costs
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Air India CEO Tewolde Gebremariam is working to reduce high maintenance costs for the airline’s A350 aircraft.
- ✓The carrier currently operates six planes with Rolls-Royce engines.
- ✓Since actual servicing expenses exceeded initial projections, the airline started talks with providers to cut costs and improve the company’s overall financial performance today.
Story at a Glance
- Category
- MARKET
- Reported By
- mint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Air India CEO Tewolde Gebremariam, who took charge of the loss-making carrier last month, is looking to bring down the airline's expenditure on maintaining its A350 aircraft as part of a broader cost-cutting exercise, reported Bloomberg citing people familiar with the matter said.
The airline currently operates six Airbus A350-900 planes, fitted with Trent XWB engines manufactured by Rolls-Royce Holdings Plc, on key routes connecting India with the US and Europe.
In 2023, Air India had placed an order for 80 Trent XWB engines, with an option to purchase 20 additional units.
Tewolde flagged the expenses involved in operating and servicing the engines, which have turned out to be higher than initially estimated, according to the report citing people familiar with the matter. They said the airline has begun preliminary talks with its service providers to explore ways to bring down the costs. Air India has arrangements with Airbus Flight Hour Services for aircraft maintenance and Rolls-Royce's TotalCare programme for engine servicing.
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