Air India to add 60 aircraft in next 18 months
What's the story
The Air India Group is set to expand its fleet by adding up to 60 new aircraft in the next 18 months. This comes as part of an ongoing transformation program, which has faced several challenges in recent years. The airline was acquired by Tata Group in January 2022 and has since been working on a five-year transformation plan.
Program progress
Transformation program on track: Aggarwal
Nipun Aggarwal, Chief Commercial Officer of Air India and Chairman of Air India Express, said the transformation program is on track despite facing "multiple black swan events."
These include supply chain issues, airspace problems, oil price volatility, and geopolitical tensions.
"We are on track with our transformation program," Aggarwal said.
Expansion plans
Deliveries to increase from end of this year
The Air India Group has an order book of nearly 600 aircraft, with less than 10% delivered so far.
Aggarwal said deliveries will increase from the end of this year, with a steady stream of wide-body and narrow-body aircraft expected from next year.
"We will be adding 50 to 60 aircraft every year for the next seven to eight years," he said.
Retrofits
Fleet harmonization on track for Air India Express
Air India Express is expected to finish retrofitting its planes into a single harmonized fleet by March next year.
Meanwhile, Air India's wide-body aircraft retrofitting is expected to take two to three years.
Aggarwal said deliveries of Boeing MAX 8 are on track and MAX 10 deliveries are in advanced stages awaiting certification.
Network restoration
Network restoration and customer experience upgrades underway
After recent service curtailments due to high oil prices and geopolitical tensions, Aggarwal said Air India is now restoring its network.
"We took some curtailment in the network in the first half of this year," he said.
The airline is investing in improving customer experience by upgrading systems and processes across the organization.