Air India, under Tata’s ownership for two years, is undergoing a transformation with significant investments and strategic changes. Here are key highlights:
The Tata Group has injected nearly $3 billion into Air India since acquiring it in January 2022.
Tata launched the Vihaan.AI project, a five-year initiative for Air India’s transformation. The airline acknowledged the need for substantial improvements.
Air India has solidified its position, benefiting from industry changes that led to a duopoly with Indigo. Over 80% of the market is now shared by Indigo and Air India.
Campbell Wilson, CEO and MD of Air India, conveyed optimism in a letter to employees. He emphasized the airline’s aspirations to be a “global airline with an Indian heart.”
Air India placed orders for 250 Airbus and 220 Boeing aircraft, totaling $70 billion at list prices. The new fleet includes the Airbus A350-900, instilling hope for a revitalized Air India.
In 2024, Air India plans to induct an average of one aircraft every six days, totaling 68 new planes. The airline has also brought back 90% of its long-grounded aircraft.
Air India added five domestic and 11 international routes in the past two years, along with opening five international stations. The airline reported a 249% revenue growth over the last two years, with the highest daily revenue reaching Rs 115 crore in August 2023.
Penalties and Customer Experience: Air India faced fines from the Directorate General of Civil Aviation for air safety violations. The airline compensated passengers for issues like denial of boarding, flight cancellations, and delays.
Employee Issues: Employee unrest surfaced over matters such as the discontinuation of retirement benefits, staff accommodation eviction, and pay cuts. Air India’s management faced disagreements with pilots over a new compensation package.
Despite challenges, Air India is striving for excellence and charting a path to become a globally recognized airline with the support and investments from the Tata Group.