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It has been an eventful two years for Air India (AI) since it was acquired by Tata Group in a landmark deal on January 27, 2022.
The hotel-salt conglomerate has contributed nearly $3 billion to the airline over the past two years.
The Tata group took over management of Air India in a Rs 2,700-crore deal and launched Vihaan.AI, a five-year project for the airline’s transformation, which it said needed a lot of work.
Air India has since consolidated its position, partly by design and partly thanks to changes in the industry, which has become a duopoly with Indigo and Air India claiming more than 80 per cent of the market.
“While we have a long way to go in improving the fleet, improving consistency, closing remaining gaps and strengthening fragile processes, the future is now more visible, more tangible and, I hope, more inspiring “said the CEO and CEO of AI. Campbell Wilson said in a letter to employees on Jan. 25.
“Despite the progress we have made in two short years since privatization, and no doubt in part because of it, expectations are high, so we must continue to raise them to meet them,” he said.
Campbell said the airline aspires to be “…a global airline with an Indian heart.”
money control Take a look at some of the highlights from the past two years.
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Large aircraft orders and the new A 350
In June 2023, the airline confirmed an order for 250 Airbus aircraft and 220 Boeing aircraft worth $70 billion at list prices. The airline’s new aircraft, including the brand new Airbus A350-900, have sparked optimism about a “new Air India” in an industry battling multiple challenges.
Throughout 2024, the Air India group intends to add one aircraft every six days on average, and 68 in total, Campbell said. The group will also use four leased Boeing 777 wide-body aircraft.
Over the past two years, the airline has increased its legacy fleet by leasing 36 aircraft and returning 90 percent of its long-grounded aircraft to service.
So far, the airline has 117 operational aircraft in its fleet and its subsidiary Air India Express has 63. In July, Air India will also begin interior refurbishment of 40 legacy wide-body aircraft. The airline has committed around $400 million to overhaul its Boeing 777 and 787.
Network expansion and increased revenue
In the last two years, Air India has added five domestic and 11 international routes to its network and opened five international stations.
Air India operates 47 non-stop flights per week and during the northern winter 2023 schedule (October to March), it will take delivery of more than 30 new aircraft and add more than 400 weekly flights.
According to data from aviation analytics firm Cirium, the airline flies approximately 2,900 weekly flights, of which approximately 32 percent are dedicated to international routes.
According to data shared by Wilson with AI employees, Air India has recorded 249 per cent revenue growth in the last two years, while Air India Express’ revenue grew 148 per cent during the period. The full-service airline recorded its highest daily revenue of Rs 115 crore in August 2023, up 26 percent year-on-year.
Sanctions and customer experience.
In the last 12 months, the Directorate General of Civil Aviation has fined Air India seven times totaling Rs 2.5 million, including the latest fine of Rs 1.10 million, for aviation safety violations.
In 2023, the merged entity of Air India and Air India Express spent Rs 1.45 crore on facilitating or compensating 1,372 passengers who were wrongfully denied boarding.
The airline spent Rs 65.86 crore on catering to 5,096 passengers due to flight cancellations and Rs 1.73 crore on catering to 81,501 passengers due to delays of more than two hours, according to DGCA data.
Employee problems
Since the acquisition of Air India by the Tata group, the airline has faced several cases of employee unrest over issues such as suspension of retirement benefits such as provident fund, pension, gratuity and healthcare.
The airline’s new management has also faced protests over the eviction of employees from staff quarters in Delhi and Mumbai, as well as salary cuts.
In April 2023, Air India pilots, who are part of the Indian Commercial Pilots Association (ICPA) and the Indian Pilots Guild (IPG), were at loggerheads with the airline over the new compensation package. offered by the airline.