Air India, now part of the Tata group, marks three years since its handover on January 27, 2025. The Tata group secured the airline through a bidding process in October 2021 and officially took control in January 2022. While the privatization raised hopes for the airline’s revival, the journey has been a blend of achievements and obstacles. Here, we examine the successes and setbacks of Air India since its return to the Tata group.
**Aircraft Orders**
In 2023, Air India made a significant commitment by ordering 470 aircraft from Airbus and Boeing, followed by an additional 100 planes from Airbus last year. This ambitious order signals the airline’s expansion plans and global aspirations. Additionally, Air India is investing in its operational ecosystem, establishing a training academy in Gurugram and ordering trainer aircraft, with another training facility set to open in Amravati, Maharashtra later this year.
**Mergers**
The Tata group began with four airlines, including those launched in partnership with AirAsia Bhd and Singapore Airlines, along with the acquisitions of Air India and Air India Express. Last year, the group streamlined its operations by merging AIX Connect with Air India Express and integrating Vistara into Air India. Singapore Airlines also acquired a 25.1% stake in Air India, with Air India Express becoming its wholly-owned subsidiary. This consolidation strengthens the group and enhances its focus, leveraging Singapore Airlines’ expertise in managing multiple brands to foster cooperation between Air India and Air India Express.
**Network Rejig & Expansion**
The past year has seen a dynamic shift in strategy, characterized by a multi-faceted approach. This includes reallocating certain routes to Air India Express, deploying the A350 aircraft, and reorganizing the network following the Vistara merger. The network restructuring aims to establish two banks of flights on routes where Air India and Vistara previously operated concurrently, enhancing connectivity to Australia and improving links to London. The focus has also returned to Delhi, with several flights being shifted from Mumbai to strengthen Delhi as a hub.
**Technology**
Air India has been investing in technology through various initiatives. This includes enhancements for customer experience, such as a new mobile app, an updated website, in-flight streaming, and Wi-Fi services. On the engineering and maintenance front, the airline has introduced a new automated warehouse powered by cloud computing. Additionally, an AI chatbot has been implemented on the website to assist with customer inquiries.
**Aircraft Revamp – A Long Way to Go**
One area where Air India has faced challenges is in the revamp and induction of aircraft. The airline, which has incorporated former Delta and Etihad planes, recently announced the induction of three B77 aircraft in a bid to improve its operational efficiency.
