Air India, which is owned by Tata Group, is planning to lower airfares for the 35 million Indians living abroad. This move aims to enhance customer satisfaction after complaints about the older cabin conditions, as reported by Bloomberg.
The airline’s CEO, Campbell Wilson, highlighted that the Indian diaspora represents a vital market for Air India, although he did not provide specific details about the pricing strategy.
Currently, Air India offers direct flights to various destinations in the United States and Canada. However, many non-resident Indians often choose cheaper connecting flights, which can significantly lengthen their travel time.
In the past, Air India has received criticism for its aging seats. One notable incident involved Indian Agriculture Minister Shivraj Singh Chouhan, who expressed his dissatisfaction after being assigned a broken seat yet charged the full fare, questioning if the airline was deceiving its passengers.
To tackle these issues, Tata Group has launched a comprehensive $400 million retrofit initiative aimed at modernizing the entire fleet of older aircraft. This initiative includes upgrading 27 narrowbody planes that were part of the takeover deal, with enhancements like new seats, carpets, and improved cabin environments. The makeover will also include a refreshed exterior and a new livery.
Additionally, other older aircraft, such as 40 widebody Boeing 787 and 777 jets, will receive upgrades, with the first Boeing 787 scheduled for modifications next month.
Since being acquired by Tata Group three years ago, Air India has been undergoing significant changes. While the airline has made notable improvements since its privatization, CEO Wilson acknowledged that there is still a considerable amount of work ahead.
The consolidation of the four Tata airlines into Air India and Air India Express was completed in late 2024. Now, former Vistara aircraft are servicing various important domestic and international routes. With these changes, Air India’s fleet now comprises over 300 aircraft.
To bolster its fleet further, India has made its largest-ever order for 470 aircraft from Airbus and Boeing, at a cost of $70 billion. This order includes 250 planes from Airbus and 220 from Boeing. In December 2024, the airline added to its order with a deal for 100 additional Airbus aircraft, which features 10 widebody A350s and 90 narrowbody A320 family jets, including the A321neo.
Despite these ambitious expansion plans, the CEO has indicated that the global shortage of aircraft is expected to persist for the next four to five years.
