According to CEO Campbell Wilson, Air India has leased every aircraft that is currently available worldwide and depleted the secondary leasing market.
Wilson stressed that rights should only be extended in situations where there is a high point-to-point demand, despite Gulf carriers’ requests for more bilateral flying rights with India.
“Every flight creates job opportunities… aviation’s connectivity makes business across sectors easier,” he said.
Air India Has Leased Every Aircraft That Is Currently Available Worldwide and Depleted the Secondary Leasing Market
Instead of letting economic benefits accrue to foreign hubs, Air India wants to keep them in India.
If Airbus and Boeing deliver their aircraft on schedule, the airline’s fleet is expected to grow to about 400 aircraft by 2027.
At privatization, there were fewer than 100 ships in the fleet; today, there are roughly 305.
Timelines for manufacturer deliveries will determine whether the final fleet size reaches 400.
Wilson encourages more original equipment manufacturer (OEM) activities in India, such as component manufacturing and repairs.
He highlighted India’s cost-effectiveness and skilled labor as competitive advantages while mentioning import and taxation barriers.
Thirteen aircraft with extended service will be modernized next year; narrow-body aircraft modernization is 68% complete and will largely be finished by year’s end.
Due to difficulties with seat supply and certification, wide-body modernization is currently in progress and should be finished by 2027.
The B777 refresh is still going on, while the first B787 refit starts in July.
Things Are Getting Better but the Supply of Aircraft Is Limited
Although things are getting better, the supply of aircraft is still limited.
Backlogs at Spirit AeroSystems may contribute to supply-chain problems that last for three to four years.
Wilson urges Boeing and Airbus to keep up their research and development for upcoming aircraft while striking a balance between innovation and present production targets.
Due to Pakistan’s airspace closure, flights to North America now take longer, and certain routes have cargo limits or refueling stops.
San Francisco occasionally requires a stop, and flights to Chicago, Toronto, and Washington, DC, are impacted.
Non-stop flights are still feasible and reasonably convenient for travelers, even with longer routes.
Wilson acknowledged ongoing contact with the government but refrained from making any public remarks regarding financial assistance.
Air India was impacted by Operation Sindoor, which resulted in the closure of 13 airports, the cancellation of approximately 800 flights, and the refund or rescheduling of 75,000 passengers.
Due to persistent travel sentiment, impacted airports have yet to return to full flight capacity.
Wilson denounced higher user development fees for business-class travelers, claiming the additional cost was unjustified and lacked infrastructure support.
He maintained that most infrastructure is shared among classes and that airlines, not airports, provide lounges.
Increased fees might weaken the growth of the aviation industry by lowering travel or industry margins.
Wilson promotes an ecosystem that is just and competitive and serves India’s larger social and economic objectives.
In order to prevent undermining its hub operations at the existing Mumbai airport, Air India intends to operate selectively on Navi Mumbai airport.
Operators are still being consulted on decisions regarding route changes to Navi Mumbai.
Air India has taken 50 B737s, 6 Whitetail A350s, 25 A320s, and 11 B777s on lease to fill capacity shortages.
“We have pretty much consumed all capacity that was out there for immediate availability,” Wilson affirmed.
Theoretically, leasing can address supply shortages, but in reality, “there is nothing to get.”
