Air India Soars Back to Glory? 550 New Planes in 6 Months – Can Tata Group Pull it Off?

CONTENTS: 550 New Planes in 6 Months

• Air India Express Strike
• Airline Labor Unrest & Woes
• Air India’s Revival Challenges
• India’s Soaring Aviation Industry
• Air India Turnaround: Patience is Key
• Air India’s Revival Takes Flight – 550 New Planes in 6 Months

Earlier this month, Air India’s budget subsidiary, Air India Express, faced significant disruptions when more than 100 crew members called in sick at the last minute. This led to the delay or cancellation of at least 175 flights. The strike action was reportedly in response to changes in human resources policies following the Tata Group’s takeover of Air India Express in 2022, a move aimed at privatizing the financially troubled airline. Disgruntled cabin crew members expressed their objections by walking out, causing chaos at various airports and leaving numerous passengers stranded due to the absence of senior cabin crew.

In the preceding month, pilots at Vistara, a leading airline jointly owned by Tata and Singapore Airlines, staged a mass sick leave, reportedly due to dissatisfaction with reduced guaranteed pay. This resulted in a staffing crisis, leading to the grounding of over 100 flights. Employee unions at both Vistara and Air India Express have raised various concerns, including limited career advancement opportunities, disparities in pay, and job insecurity.

In addition to labor-related challenges, both airlines also grapple with frequent passenger complaints regarding issues such as broken seats, delays, malfunctioning in-flight screens, and cleanliness problems.

Despite high hopes for the Tata Group to swiftly revive Air India’s former glory as the “Maharaja of the Sky,” the multinational conglomerate is facing challenges in restoring the national carrier’s reputation after years of government neglect. Tata is currently in the process of consolidating four airlines: Air India Express, AIX Connect (operating as AirAsia India), Vistara, and Air India.

Experts in civil aviation and travel industry anticipate that the complete overhaul of India’s newly privatized 92-year-old flag carrier will require a significant amount of time. Umesh Kamath, managing director of Dravidan Aviation Services, highlighted Air India’s assets, routes, and established network as advantages but noted issues with human resources and a sluggish workforce. While the top management has a promising vision for the future through mergers aimed at improving service quality and the carrier’s image, concerns remain about labor force challenges and unions.

Regarding India’s trajectory as an economic superpower, it’s a separate and broader topic that involves various factors beyond the aviation industry.

India’s aviation industry is experiencing significant and promising growth, with projections indicating expansion in passenger numbers, aircraft acquisitions, and airport infrastructure development.

The Indian government has allocated approximately $11 billion (€10.2 billion) for the construction of new airports and the modernization of existing ones, underscoring its commitment to industry growth.

India has emerged as the world’s third-largest aircraft purchaser, following only the US and China, with plans to expand its fleet from 713 to over 2,000 aircraft within the next decade.

In 2023, Indian airlines collectively placed orders for 970 aircraft, indicating robust demand and confidence in future growth prospects.

In a notable development, Air India alone placed an order for 470 aircraft in February 2023, including models from leading manufacturers Airbus and Boeing, further signaling the country’s significant presence in the global aviation market.

Jitender Bhargava, former executive director of Air India, emphasized that the full impact of the acquisition would likely be felt by 2027, highlighting the extensive efforts required to elevate Air India back to the status of a top-tier, world-class airline.

Bhargava compared the process to a test match rather than a quick T20 cricket game, stressing the importance of time, patience, and focus in improving brand reputation, technology, service quality, and fleet acquisition.

Hardi Oza Patel, a travel curator at Velvet Escapes, echoed Bhargava’s sentiments, acknowledging that acquiring a debt-ridden carrier was a strategic move but emphasizing the necessity of time for comprehensive transformation.

Patel emphasized Tata’s commitment despite challenges and noted that achieving excellence in the Indian aviation industry required persistence and patience. She expressed confidence that, despite criticism and unrest among staff and airline workers, Tata’s efforts would ultimately lead to a significant achievement for the industry.

Currently, the Tata group holds a 29% share of India’s domestic air traffic and is responsible for 56% of international passengers among the country’s airlines.

Air India CEO Campbell Wilson expressed confidence in the ongoing efforts to revitalize the airline, emphasizing substantial progress made toward restoring it to its former prestige.

In an interview with skift.com, Wilson highlighted a significant increase in the number of aircraft available to Air India, with a net increase of around 550 aircraft. He noted that this expansion was driving an unprecedented rate of growth, with the airline receiving a new aircraft approximately every six days over the past six months, a trend expected to continue for the next year.

While acknowledging the challenges associated with the Tata Group’s takeover, including operational and internal issues, many aviation experts and travelers recognize the steps being taken to address these concerns.

Reports indicate that Air India Express has rescinded termination letters issued to around 20 striking cabin crew workers, suggesting efforts to resolve internal conflicts. The airline spokesperson previously mentioned taking appropriate actions against certain individuals.

Furthermore, Air India is actively working on integrating new aircraft into its fleet while phasing out older ones, a step indicative of its commitment to modernization and improvement.