Air India's Strategic Overhaul: Navigating Operational Challenges

Air India is ramping up efforts to boost the reliability of its legacy aircraft fleet, which includes the Airbus A320 family, Boeing 787s, and Boeing 777s. This initiative is an integral part of the airline's expansive operational upgrade program, CEO Campbell Wilson revealed to staff during a recent town hall meeting.

The airline has identified chronic issues like supply chain delays and spare parts shortages as critical bottlenecks and is actively collaborating with original equipment manufacturers (OEMs) to expedite solutions. In conjunction with shareholder partner Singapore Airlines, Air India is sharing industry best practices on engineering, maintenance, and operational efficiency, insiders reported.

Aligned with Air India's ongoing multi-year retrofit plan, the airline aims to modernize cabin interiors and systems for both narrowbody and widebody aircraft. The retrofit began with the first Boeing 787-8 widebody aircraft dispatched to the U.S. in July, expected back by December 2025, with subsequent aircraft undergoing monthly retrofits. In the narrowbody sector, 14 out of 27 A320neo aircraft have been upgraded and returned to service, with remaining retrofits due by September 2025.

Despite operational hurdles, such as Iran's airspace closure and engineering safety stoppages, Air India's performance remains robust. Over the last two months, the airline transported approximately 4.4 million passengers across 33,000 flights, maintaining an average of 108,000 passengers daily and a year-to-date load factor of 84%. The airline has also met its on-time performance goals, boasting an improved Net Promoter Score of 35 in July 2025, CEO Wilson shared.

Addressing safety incidents compassionately, over 600 Tata Group employees, under 'Air India Angels & Caregivers', were mobilized in Ahmedabad to support affected families. Senior leaders remain in constant touch with the families of crew members, and the airline has distributed interim compensation of Rs 25 lakh to each of 194 families. Additionally, a suite of employee support programs, including Care Circles, Reflection Sessions, and online yoga, have been launched to bolster workforce morale.