NEW DELHI - Air India is planning to triple its fleet of 113 aircraft over five years as the money-losing carrier prepares to transform the business following its takeover by India’s largest conglomerate, Tata Group.
“The airline is in discussions with aircraft and engine manufacturers on procuring new aircraft,” Air India chief executive officer Campbell Wilson said in New Delhi on Tuesday. “I wouldn’t put a number on it because negotiations are still ongoing. We also have a view on the proportion of wide- and narrow-body and the increase is going to be a significant number of both.”
Boeing is offering 737 Max jets once meant for Chinese customers to Air India as the plane maker tries to offload some of the roughly 140 aircraft it is currently not allowed to deliver to the country, Bloomberg News reported on Tuesday. Air India is considering ordering as many as 300 narrow-body aircraft to revamp its fleet, according to a June Bloomberg report. The airline is planning to induct 25 Airbus and five Boeing aircraft from lessors starting in December, it said in September.
Air India expects to increase its domestic and international market share to 30 per cent in five years, said Mr Wilson, who was previously CEO of Singapore Airlines’ (SIA) budget unit Scoot.
SIA is in talks with Tata Group over a potential merger of Air India with Vistara airline. Tata has a 51 per cent stake in Vistara, while SIA holds 49 per cent.
Mr Wilson said the first phase of Air India’s transformation will address issues such as on-time performance, food and refunds that are “tarnishing” the airline’s brand. In the second phase, Air India will accelerate investment in people, systems and equipment. It will aspire to become a “world-class” airline towards the end of the five-year overhaul plan, he said.
The airline has restored 17 grounded aircraft and 12 are yet to return to service. It is in discussions with suppliers to refurbish existing wide-body aircraft, which will require significant engineering work, Mr Wilson said. BLOOMBERG
