Air India's Turnaround: Struggles and Strategies for Global Competitiveness

Air India, now under Tata Group ownership, is undergoing a major transformation effort to become a world-class airline. Faced with aircraft parts shortages and flight delays, the airline has invested heavily in fleet upgrades. The challenges are most pronounced in premium services as it aims to attract high-paying customers.

Two years after Tata Group assumed control of Air India in a $2.4 billion acquisition, the airline's ambition to transform into a world-class carrier is thwarted by global shortages and aged fleet issues.

The situation is particularly challenging for Air India compared to other airlines, according to CEO Campbell Wilson. Despite nearing the halfway mark of its five-year turnaround plan, Air India is lagging behind competitors like Emirates and Qatar Airways. The airline's fleet, mostly unrefreshed since 2010, is a stumbling block, especially in the premium segment where high-paying customers are reluctant to book due to outdated in-flight entertainment and seating.

Air India has launched a $400 million initiative to rejuvenate its fleet and has ordered 470 new aircraft, 70 of which are widebody jets. The airline is focusing on retrofitting 67 planes by mid-2025 and aims to bring its widebody fleet up to international standards by 2027. Delays, mainly due to seat manufacturers facing skilled labor shortages, have pushed back timelines but efforts to modernize continue, backed by significant investment from partners like Singapore Airlines. "Two years in, I think we're in a good place," said Wilson.

(With inputs from agencies.)