Air India Enhances Premium Offerings and Fleet

Air India is making significant strides in enhancing its premium cabin offerings and expanding its fleet. Under the Tata Group’s ownership, the airline is set to double the number of premium cabins on its legacy wide-body aircraft. This move comes as part of a broader strategy to capitalize on the growing demand for premium travel in the post-COVID era. With plans to introduce an all-new first class on its flagship Airbus A350, Air India is positioning itself to attract high-end travelers in the coming years.

Doubling Premium Cabins

Air India is embarking on an ambitious plan to retrofit its wide-body aircraft, nearly doubling the number of premium cabins available. This initiative is set to begin this year and is part of a larger strategy to enhance the overall passenger experience. The airline’s Chief Commercial Officer, Nipun Aggarwal, highlighted that the demand for premium travel has surged since the Tata Group took over in January 2022. The airline’s front-end revenue has increased by 2.3 times, significantly outpacing the 1.6 times growth seen in economy class.

The retrofitting process will start with the legacy Boeing 787s, followed by the much-anticipated upgrades to the Boeing 777s in 2026. This focus on premium offerings is a direct response to the changing preferences of travelers, who are increasingly seeking enhanced comfort and service. By investing in its premium cabins, Air India aims to attract a more affluent customer base and improve its competitive edge in the aviation market.

Fleet Expansion and Modernization

Since the Tata Group’s acquisition, Air India has added 92 aircraft to its fleet, revitalizing many grounded planes. The merger of Vistara and AirAsia India has resulted in a combined fleet of 300 aircraft, significantly increasing the airline’s operational capacity. Aggarwal noted that the revenue has grown over tenfold since FY20, showcasing the airline’s rapid recovery and expansion.

The airline’s strategy includes strengthening its hubs in Delhi, Mumbai, and Bengaluru. By the end of next year, Air India and its budget subsidiary, AI Express, will operate around 120 narrow-body planes each. This hub-and-spoke model will facilitate better connectivity for international flights, allowing Air India to capture a larger share of the growing aviation market. With India being the fastest-growing aviation market globally, Air India is poised to benefit from the increasing demand for air travel.

Navigating Currency Challenges

While Air India is making significant progress, it faces challenges related to the falling value of the Indian rupee. Aggarwal acknowledged that the depreciation of the rupee puts pressure on profitability, as many expenses are incurred in dollars. However, Air India has some hedging strategies in place, allowing it to mitigate the impact of currency fluctuations. The airline charges in foreign currency for international flights, which helps offset some of the costs. Aggarwal emphasized the need to balance fare increases with demand sensitivity. Raising fares could deter travelers, so the airline must carefully consider its pricing strategies. This approach is crucial for maintaining traffic levels while ensuring profitability in a competitive market.


Observer Voice is the one stop site for National, International news, Editorโ€™s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn

Back to top button