Global shortage is hurting most airlines’ plans, but problem is ‘more serious’ for Air India chief executive Wilson Campbell he said, as India’s flag carrier nears the halfway point of a five-year turnaround plan but begins a generation behind rivals such as Dubai’s Emirates and Qatar Airways.
“Our product is obviously much more dated. These aircraft have not had a product update since they were delivered in 2010, 2011. So it is a more acute need for us,” CEO Wilson said in an interview in Sydney. .
“If we have legacy seats and in-flight entertainment systems, we operate with one arm tied behind our back,” he said.
The challenges are greater in the premium segment of the aircraft, as Air India seeks to attract high-spending travelers, added Wilson, former Singapore Airlines executive.
Air India has already placed mammoth orders to upgrade its fleet and just this month began a $400 million plan to refurbish old planes to boost its transformation.
The global shortage is hurting the plans of most airlines, but the problem is “more serious” for Air India, Chief Executive Campbell Wilson said.
The airline’s restructuring after decades of decline under state ownership is being watched by manufacturers and lessors, as well as investors in Singapore Airlines, which will own a 25% stake in the Indian airline from November and has agreed to invest up to 600 million dollars in recovery.
“Air India… has a long way to go before approaching international standards, for which it needs to complete the re-equipment process with new and modernized aircraft,” said Brendan Sobie, an independent aviation analyst based in Singapore.
NEED FOR SEATS
Rebuilding Air India’s reputation depends on getting planes with top-notch premium seats and service in the skies as quickly as possible to attract travelers who are reluctant to book with the airline, even as it offers non-stop flights on key international routes. , due to its poor conditions. product and risk of delays.
Of the 470 new aircraft the airline has ordered, 70 are wide-body aircraft. It has already received six Airbus A350s and leased 11 Boeing 777s.
It is overhauling around 67 aircraft, starting with 27 narrowbodies that will be completed by mid-2025, allowing it to better compete with domestic rival IndiGo’s larger, more modern fleet.
The start of the 40 widebody refits, originally scheduled for this year, has been delayed until early 2025 due to delays in obtaining its customized first and business class seats.
Seat makers have said they are dealing with a shortage of skilled labor and capacity, Wilson said.
Once the renovation begins, it will take about two years for the widebody fleet to reach international standards, he added.
ReutersOf the 470 new aircraft the airline has ordered, 70 are wide-body aircraft. It has already received six Airbus A350s and leased 11 Boeing 777s.
Older planes have led to lower utilization of about an hour per day on average across Air India’s entire fleet, and even more on planes flying long-haul routes such as to the United States, Wilson said.
As an interim solution, Air India is protecting some of its most profitable long-haul sectors, such as Mumbai to San Francisco and Delhi to London, by securing modern aircraft.
In the year ending March, Air India increased its capacity by 21% from a year earlier and raised passenger load factors, or the percentage of seats occupied, reducing net losses by 60% to 532 million. dollars and increasing its income by 24.5% to $6.15. billion.
“When we can get the prices the product deserves and people have a good view of the reliability and the service proposition, we can fly to higher-performing routes and win back the high-performing customer,” Wilson said.
He did not give a deadline for achieving profitability.
‘STABILIZE THE BOAT’
Air India, founded in 1932 by the late Tata Group chairman JRD Tata, was once among the best airlines in the world. Since its nationalization in 1953, it went into a long decline mainly due to lack of investment.
When Tata regained control in 2022, the airline’s systems were outdated, offices were scattered and 30 planes were grounded for lack of spare parts.
“It was in complete chaos. We had to spend the first six months stabilizing the ship,” Wilson said.
By October 1, Air India will have completed the merger of its low-cost airlines Air India Express and AirAsia India, and by November 12 it will add view into the fold, which Tata currently jointly owns with Singapore Airlines.
Flight delays remain a problem, with only 18% of Air India flights to Europe and 48% to North America arriving within 15 minutes of their scheduled time in August, according to data provider Cirium Aviation.
A switch to Air India’s own maintenance and repair facilities should help reduce maintenance-related delays, Wilson said.
The facility, which it is building with the help of Singapore Airlines subsidiary SIA Engineering, will be ready in 2026. Air India is contractually obligated to use government-owned Air India Engineering Services Ltd until the end of 2024.
“After two years, I think we’re in a good place,” Wilson said.
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