'Six months is reasonable'—Air India CEO on Boeing aircraft delay
Air India's CEO Campbell Wilson has admitted a delay in delivery of 50 "white-tail" aircraft from Boeing. The planes were supposed to join the fleet in early December this year. However, due to challenges faced by Boeing, the delivery has been pushed to June 2025. "Fifty white tail aircraft, all of them were to come by December this year... They will stretch up to June next year and that in itself has a little bit of impact," Wilson told PTI.
Impact of Boeing's delivery delay on Air India
The term "white-tail" refers to aircraft manufactured without a particular customer in mind. Out of the 50 delayed white-tail Boeing 737 MAX aircraft, at least 35 have already been added to Air India's fleet. The planes are being utilized by the airline's budget subsidiary Air India Express. Wilson said the length of this impact is unknown but "six months is reasonable for some aircraft."
Operational merger and growth prospects
Air India has smartly merged its operations with Vistara under AIX Connect, which also operates Air India Express. Wilson expects a major uptick in domestic and short-haul international operations in 2025, as more narrow-body planes enter the fleet. He also announced plans for a refit program that will lead to a temporary reduction in the number of wide-body aircraft at their disposal.
Retrofit plans and fleet expansion
Wilson revealed that the retrofit of legacy wide-body aircraft, 787s and 777s, scheduled for this year, has been postponed due to continued recovery in global supply chains. The retrofit will now begin in 2025 with three-four aircraft retrofitted every month until all 40 legacy wide-body planes are retrofitted. Under its five-year transformation plan, Air India plans to grow its fleet to 400 aircraft by 2027. The group currently operates a fleet of 300 aircraft including those of Air India Express.
Market share and route dominance
In a recent media briefing, Wilson revealed that Air India commands a whopping 29% market share domestically and a whopping 55% on metro-to-metro routes. On the top 120 domestic routes, the airline's market share stands at around 40%. These numbers underscore Air India's dominance in the Indian aviation space despite the challenges of delayed aircraft deliveries.
