Air India ventures into competitive skies with revamp strategy, new fleet

NEW DELHI, INDIA: Air India, which had long struggled under government ownership while affluent Middle Eastern airlines captured a significant share of travellers, is now actively working to enhance its competitive position. The airline is introducing more affordable fares, revamped cabins, upgraded lounges, and reduced layover times as part of its efforts to attract passengers.

The multi-year turnaround strategy will primarily focus on refurbishing its fleet of 27 Boeing 787-8 Dreamliners, some of which are over a decade old, with plans for the upgrades to be completed by early 2027. The second phase will involve the older Boeing 777 wide-body aircraft, set to begin next year, although this process is expected to be more complicated due to challenges with seat suppliers, according to CEO Campbell Wilson.

“Consistency is key to a good airline,” Wilson said in a Bloomberg interview. “It’s about maintaining product quality, crew service, punctuality, and overall experience both at the airport and on-board. We are diligently working on all these aspects.”

The Indian travel market presents significant untapped potential for both local and international carriers, bolstered by a growing middle class and government initiatives to improve infrastructure, including airports. To capitalize on this growth, Air India placed a substantial order for new aircraft from Airbus and Boeing two years ago to modernize its fleet.

In addition to the new lounges, expedited connection times, and enhanced ground personnel, the airline aims to boost its profitability and improve passenger experiences at its hubs in New Delhi, Mumbai, and Bengaluru, ultimately re-establishing itself in the global aviation arena.

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Once a prominent player with nearly a century of history, Air India is now under the ownership of the Tata Group, which has a legacy as an aviation pioneer in India. Upon taking over in late 2021, the late Ratan Tata recognized the considerable effort required to revitalize Air India while also noting the opportunity to restore its former image and reputation.

Today, the Air India Group operates two airline brands: full-service Air India and Air India Express. Wilson aspires to position the group as a competitor to major global airlines like Emirates for India’s international passenger traffic, as well as making Indian airports preferred transit points for travellers, a segment currently dominated by the low-cost airline IndiGo.

IndiGo, India’s largest airline, has aggressively expanded its reach, now targeting international markets. The airline has placed orders for Airbus A350s, set to be delivered starting in 2027, positioning it in direct competition with Air India’s international services. Additionally, IndiGo is set to incorporate Airbus A321 XLRs into its fleet this year, allowing it to access destinations as distant as Germany.