Air India launched a five-year-long turnaround plan called Vihaan.ai in 2022, right after the current CEO & MD, Campbell Wilson, joined the airline. The airline put it in three phases, Taxi, Take-off and Climb.
By 2027, Air India wants to achieve the following five objectives as an airline.
- 3x fleet size of September 2022
- >30% market share in the domestic and international markets
- Establish a new brand identity
- Be the most technologically advanced, socially responsible and innovative airline
- India’s most preferred employer in the travel industry
Air India completes two years of the turnaround plan.
Air India published a report card of the two years of its turnaround plan, which LiveFromALounge.com reviewed. The airline group (including Air India Express, AirAsia India and Vistara) had the following headlines to report back:
- Launched 35 new routes (10 domestic, 25 international)
- Launched 11 new stations (2 domestic, 9 International)
- Operational fleet size of 142 of Air India, which includes six new A350s, 36 leased aircraft and 85 of Air India Express, which provides for 35 new B737s
- Air India added 5,000 new crew members and 4,000 new employees across departments, reducing the average age at the airline from 54 to 35
Consequently, Air India (Group) ‘s passenger market share has gone up from 24% in FY23 (April 2022 to March 2023) to 27% in FY24 (April 2023 to March 2024) for domestic operations and from 21% in FY23 to 24% in FY24 for the international market on the back of network expansion.
Campbell Wilson, in an internal note, also told employees that the airline had reduced its losses over the year. His note mentioned,
Air India achieved positive EBITDAR for the year ended March 31, 2024… consolidated losses reduced by over 50% year-on-year and consolidated operating revenues rose by 25% to the highest-ever level…. these early results should encourage us that the effort is bearing fruit…. strong momentum has continued – as it must, for being world-class requires being financially successful too.
Of course, the airline has much more work to do, and passengers are often irked when they board older Air India aircraft and find things not working. The airline promises that the retrofit of the widebody aircraft will start as soon as the seat vendors can supply the seats after getting them certified. In the meantime, the airline claims that it has restored First and Business Class IFE to 99%+ and Economy Class IFE to 90% for the legacy fleet. Also, it has restored 75% of unserviceable seats across legacy widebody aircraft.
Bottomline
Air India has a long way to go, but the airline is working in the right direction and will get there in the next three years. For now, the heavy lifting continues for them, and in another year or so (by the end of 2025), we will start to see some semblance and orderly growth for the airline, with most of their complaints resolved.
What do you make of how far has Air India come in the two years since their turnaround plan got going?
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The inconsistency factor can do a lot of harm to the perception of the airline whilst it goes through this transformation.
You can get an ex-Etihad first class seat and be wowed by the new Air India … or you can get the legacy first class seat for 15 hours and be annoyed at your own stupidity of paying for that seat.
I don’t know what the right answer but my suggestion would be to reduce the sale of First Class to routes where you know you can put your best aircraft on, and for others, monetise it as a J+
Cabin as best you can.
Hi Ajay. Am a long time admirer of your articles. On the ground I don’t see much change in the last 2 year’s in the AI operations. Recently travelled BOM SFO on Premium economy. Ex Delta Aircraft well maintained. However return from EWR on Economy on the Etihad aircraft was tough. Yellowed equipment, cracks on the seats and tables. Delayed by 15 hours. Travelled BOM LHR. Same situation. Yellowed equipment. iFE didn’t work. My poor colleague had to suffer a fully reclined seat for the entire duration of the flight. The return flight LHR BOM is already delayed by 1.5 hours. Seems to be a lack of priority that the prestige sectors like US and UK where they get most of the flak have been ignored till date. I have started advising my colleagues to avoid AI for the time being till they get their act in place.
@Arun, I firmly believe the airline should block unserviceable seats rather than sell them, but then I can ask for them, suggest them, etc. I can’t implement it.