The Tata Group is making massive investments in Air India’s turnaround, and we have spent the better part of the past two years discussing this here on LiveFromALounge.com. But now, the airline is making a move that will enhance the availability of its premium seats to its customers. The airline is running at an 88% passenger load factor these days (when writing this).
Air India tinkers staff travel policy to make more seats available to customers.
Air India’s internal travel policy has been modified, with the new one coming into effect in June 2025. As per the new policy, which was first reported by The Times of India, the whole organisation now has a mandate to travel Economy Cabin on “Duty Travel”. This would include everyone from cabin crew to pilots deadheading to be repositioned for their flights or returning home, or even the corporate/management leaders of the airline, who, until so far, used to be able to travel Business Class. The policy applies only for domestic travel, and on international trips, the earlier entitlements of the crew continue.
Until so far, the airline’s policy allowed the corporate personnel above a particular band to travel business on a space-confirmed basis, similar to that of captains. Everyone will now be put in Economy Class, up to the CEO. From there, if any premium space is available at T-50 (50 minutes before departure, when check-ins are closed and the manifest is finalised), these people will be upgraded on a space available basis. This will leave more space for the airline to offer their customers seats, including upgrades to the point of flight closure.
Air India has expanded its Premium Economy offering. As India’s only airline offering Premium Economy alongside Business and Economy Class, Air India provides this option on 39 domestic routes, with over 50,000 seats weekly. Nearly 34,000 seats serve key metro-to-metro routes: Delhi-Mumbai, Delhi-Bengaluru, Delhi-Hyderabad, Mumbai-Bengaluru, and Mumbai-Hyderabad.
Following the retrofit of 27 legacy A320s with a new three-class configuration, Air India will boost Premium Economy seats by 30%, exceeding 65,000 weekly. The retrofitted aircraft feature brand-new seats across all cabins and will continue to expand route coverage across India and to short-haul international destinations. The retrofit is expected to be completed this year within 2-3 months.
Of course, the by-product of this move will also be that the people at Air India will get a handle on how 60-65% of their customers travel, making them more aware of things at the back of the plane. This is an excellent move, with the proper example setting and an instance of leading from the front.
Bottomline
Air India will now have the entire organisation, right up to the CEO, travel in Economy Class, effective June 1. They will be entitled to upgrades on a space available basis once the flight is closed, 50 minutes before the scheduled departure time.
What do you think of the new travel policy at Air India?
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