The Tata Group’s overhaul of Air India’s fleet is being hampered by the supply chain issues hitting the entire aviation industry according to the airline’s CEO, with limited supplies slowing the company’s refurbishment and fleet renewal programmes.
The airline is partway through a multi-billion dollar five-year overhaul, with 470 aircraft on order from Airbus and Boeing and work recently beginning on a $400m refit project, but CEO Campbell Wilson said Air India was “operating with one arm tied behind our back” thanks to legacy equipment on its planes.
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Speaking to Reuters, Wilson said: “Our product is obviously a lot more dated. These aircraft haven’t had a product refresh since they were delivered in sort of 2010, 2011. And so it’s more of an acute need for us.”
Refurbishment issues have particularly affected the delivery of premium seats according to Wilson, with the retrofit of 40 widebody aircraft pushed back to early next year as Air India waits to receive customised business and first-class seats for the planes.
As a result of the delays in upgrading its fleet, the airline has reportedly focussed its efforts on some of its most profitable routes, with modernisation works now focussed on aircraft used for long-haul flights to major cities such as San Francisco and London.
Wilson’s comments came only shortly after Air India reached the final stages of its acquisition of Vistara, one of two major acquisitions finalised by Tata Group since it acquired the airline in 2022 as it expands the airline’s reach in the Indian aviation industry.
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By GlobalDataWhile the flag carrier remains one of the biggest airlines in the country, it has seen stiff competition in recent years as others seek to take advantage of India’s growing air travel market, with low-cost carrier Indigo in particular overseeing a rapid expansion of its business to take the biggest market share.
However, though Air India may be struggling to move forward with its business overhaul as planned, the supply chain issues are not limited to the Indian airline, with others such as Air New Zealand also reporting a direct impact on its operations from delivery delays.
