Air India, under the leadership of the Tata Group, is preparing for significant growth in domestic and short-haul international traffic in 2025. This comes as the airline continues its five-year transformation journey, with a goal of reaching a fleet of 400 planes by 2027. Currently, the Air India Group, which includes Air India Express, operates around 300 aircraft.
Fleet Expansion and Retrofit Plans
Air India CEO and MD Campbell Wilson confirmed that while the airline is adding more narrow-body planes to its fleet, the retrofit of legacy wide-body aircraft, including the Boeing 787s and 777s, is set to begin in early 2025. “We had hoped to start retrofit of 787s and 777s by now. Unfortunately, the global supply chains in some areas are still recovering and seats in particular are a challenge… Once it (retrofit) starts in 2025, we will be doing 3-4 aircraft every month until the full legacy 40 wide-body aircraft are completed,” Wilson explained.
This retrofitting process will help enhance the airline’s long-haul capabilities while continuing to cater to growing demand for shorter routes. However, with the addition of more narrow-body planes, growth for 2025 is expected to primarily come from domestic and short-haul international flights.
Strong Domestic Market Share
Wilson also highlighted Air India’s dominant position in the domestic market, with the airline holding a market share of 29% overall and 55% on metro-to-metro routes. “On top 120 domestic routes, the market share is about 40%,” he added. The airline’s focus on bolstering its domestic operations is aligned with its broader strategy to expand its reach and strengthen its position in the Indian aviation market.
Delays in White Tail Aircraft Delivery
Wilson acknowledged delays in the delivery of white tail Boeing 737 MAX aircraft, which were originally expected to join the fleet by December 2024. “50 white tail aircraft, all of them were to come by December this year… They will stretch up to June next year and that in itself has a little bit of impact…,” Wilson said, attributing the delays to issues at Boeing, including a recent strike. So far, at least 35 of the 50 white tail aircraft have been delivered, and the remainder is now expected to arrive by June 2025.
Consolidation of Tata Group’s Aviation Business
As part of Tata Group’s broader strategy, Air India has also merged with Vistara and integrated AIX Connect with Air India Express, consolidating its position in India’s aviation sector. This restructuring is expected to enhance operational efficiency and allow for a more unified strategy across Tata’s airline businesses.
With its growing fleet and renewed focus on domestic and regional routes, Air India aims to transform its service offerings and deliver a better travel experience for passengers across India and beyond.