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Air India, now a Tata group company, completes three years of handover to the Tata group on Jan 27, 2025. Tata group won bids for Air India in October 2021 and took formal charge of the airline in January 2022. While privatisation brought hope of a revival for the beleaguered airline, the journey so far has been a mixed bag of successes and challenges. Here, we explore the hits and misses of Air India since it returned to its original owners, the Tatas.
Aircraft orders
The airline placed an ambitious order of 470 aircraft with Airbus and Boeing in 2023, which was topped up for another 100 planes last year with Airbus. The order made the intentions clear on the expansion side and its global ambitions. The airline also started investing in the ecosystem with a training academy in Gurugram, followed by ordering trainer aircraft and establishing a training academy in Amravati, Maharashtra which is expected to be operational later this year.
Also Read | Air India to offer first class seats in A350-1000 planes
Mergers
The group started with four airlines, one each which it started in collaboration with AirAsia Bhd and Singapore Airlines and the two which it acquired, Air India and Air India Express. Last year it consolidated these into two, merging the renamed AIX Connect to Air India Express and Vistara into Air India. This also saw Singapore Airlines take a 25.1% stake in Air India with Air India Express being its fully owned subsidiary.
The merger makes the group stronger and more focused than ever. Singapore AIrlines’ experience in operating two different brands will come in handy to drive both Air India and Air India Express and build co-operation between the two over a period of time.
Network Rejig & Expansion
The last year saw a sudden shift in gears with a multi-pronged approach. This involved shifting certain destinations and flights to Air India Express, starting deployment of the A350 and most importantly rejigging the network after merger with Vistara.
The network rejig sees building two banks of flights on routes where Air India and Vistara went back to back along with changes to the flights to Australia becoming the fastest option from Sydney and Melbourne to Frankfurt. The rejig also helps connect better to London in many ways. Additionally, the focus is firmly back on Delhi and building Delhi as a hub as it shifted a few flights from Mumbai to Delhi.
Technology
The airline has been investing in technology, which again has been a multi pronged approach. Technology which helps the customer like a new mobile application, website along with inflight steaming and wi-fi; on the engineering and maintenance side with a new automated warehouse driven by cloud computing. The airline also has an AI bot now on its website to answer queries.
Aircraft revamp – a long way to go
If there is one area where Air India has lacked it is aircraft revamp and induction. The airline which inducted former Delta and Etihad planes had announced the induction of three B777s from Singapore Airlines, which never happened. Its first narrowbody retrofit which started in September 2024 was expected back in service in December but is yet to start commercial operations. It’s much publicised retrofit plan for the Dreamliners and B777s is yet to take-off after repeated announcements, with the airline citing Supply Chain constraints as the reason. While the airline at some point talked about having all premium seats being repaired, social media complaints about issues in premium cabins crop up at regular intervals.
As a stop gap arrangement, the airline is going to invest in re-carpeting some widebody planes this year, while the retrofit also starts.
Tail Note
This massive investment has not only positioned Air India as a serious player in the global aviation market but also signaled its intent to reclaim its lost glory. However, shiny new planes is not the answer to everything. A razor sharp focus on service
Under Tata’s stewardship, Air India has made strides in enhancing the customer experience. From revamped in-flight menus featuring gourmet cuisine to refurbished aircraft interiors, the airline has focused on aligning its service standards with global benchmarks. The reintroduction of premium economy on select routes has also widened its appeal among a diverse passenger base.
Also Read | Air India Wi-Fi: Airline offers in-flight internet services on domestic routes
What does the future hold?
A premium airline in the making going by the choices it is making. The airline will need massive ramp up in inflight services and training to match the shiny hardware and the promise that the airline is making. It is too early to discuss the finances but the airline definitely is tracking its unit costs, revenues and transit passengers. One difference between Air India and IndiGo is that Air India is investing heavily in the ecosystem with a training academy, a first in India which even an airline like IndiGo does not have.
As Air India prepares to celebrate its centenary in 2032, the stakes are high. The airline’s journey since privatisation has been a mix of promising developments and ongoing struggles. Whether it can soar to new heights or be strangled by its challenges will be a story worth watching in the years to come.
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