Under Tata Group’s leadership, Air India is undergoing a major transformation to reclaim its status as a global aviation leader. With an ambitious expansion strategy, the airline is planning to strengthen its international operations by adding a significant number of wide-body aircraft to its fleet. This move is expected to boost Air India’s competitiveness and position it as a dominant force in global air travel.
Major Aircraft Purchase
Air India is currently in discussions to purchase 50 or more wide-body aircraft, including Airbus A350 and Boeing 777X models. The airline is negotiating with Boeing and Airbus, with a final decision expected by June, coinciding with the Paris Air Show.
This follows last year’s massive order of 470 aircraft, including 100 smaller planes from Airbus. The addition of wide-body jets signals Air India’s renewed focus on expanding its long-haul operations and competing with leading international carriers.
Rising Air Travel Demand
The expansion comes at a time when international and domestic air travel demand is surging. According to ICRA, a Moody’s local rating agency, international travel from India is projected to grow by 15-20% by March, while domestic travel could increase by 7-10%.
To meet this demand, Air India has already placed orders for 50 Airbus A350, 10 Boeing 777X, and 20 Boeing 787 Dreamliner aircraft. However, securing slots for wide-body jets has become increasingly difficult due to high global demand.
Challenges and Future Outlook
Despite its aggressive expansion, Air India faces hurdles such as aircraft delivery delays. Currently, only about 43-44% of Indian outbound travelers choose Indian airlines, with the majority opting for foreign carriers. This presents a significant growth opportunity for Air India to capture a larger market share.
In addition to acquiring new aircraft, Air India is also modernizing its existing fleet. Alongside its subsidiary, Air India Express, the airline expects to receive 20 new aircraft this year. With Tata Group at the helm, Air India is set to regain its former glory and establish itself as a leading global airline.
