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Persistent supply-chain issues delay Air India fleet upgrade by up to 2 years: CEO Wilson
Air India’s $400 million fleet retrofit and expansion plans face delays as supply-chain issues hit aircraft and seat deliveries
New Delhi: Air India’s transformation plan has been delayed by global supply-chain disruptions, with aircraft deliveries and cabin retrofits postponed by up to two years, chief executive officer (CEO) Campbell Wilson said on Wednesday.
Speaking on the sidelines of the launch of Air India’s first flagship lounge, The Maharaja Lounge, at Terminal 3 of Indira Gandhi International Airport in New Delhi, Wilson said the airline had expected to receive around 39 new aircraft by this stage but has taken delivery of only two.
Air India is undertaking a $400 million programme to refit older wide-body aircraft with new seats and cabins. Wilson said the project remains on budget but is behind schedule due to manufacturing and certification delays at seat suppliers.
Wilson said the delays have deferred product upgrades and expansion plans. “Unfortunately, when you layer in the retrofit delay and the delivery delay, it just pushes back the product upgradation and the expansion plans that we had,” he said.
“In the case of the 787, it’s about a year behind where we hoped it would be. In the case of the 777, it’s about two years behind,” he said, adding that many airlines were facing similar post-Covid constraints.
The CEO recalled a major seat manufacturer withdrawing after prototypes were developed, forcing Air India to restart the process. “For one of the world’s biggest OEMs (original equipment manufacturers) to just walk away from a commitment was very frustrating. It cost us two years,” he said.
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Despite the setbacks, Wilson maintained that most elements of the Vihaan.AI turnaround plan were nearing completion. “Most work streams are either complete or nearly complete. The mechanical part of rolling it out across the full fleet still takes some time,” he said.
The airline plans to induct 20 wide-body aircraft with new or refurbished cabins this year, while the retrofit programme will continue for another couple of years.
Air India recently introduced its first factory-fresh Boeing 787 configured for the carrier and will soon deploy the first refitted aircraft from its legacy fleet.
New lounges in Delhi and San Francisco are also part of the upgrade, which Wilson described as “another manifestation of the new Air India on the ground”.
The Maharaja Lounge unveiled on Wednesday will be open to Business and First Class passengers, Gold and Platinum Maharaja Club members, and eligible Star Alliance members starting February 16.
“The Maharaja Lounge at Delhi airport is a significant milestone in our transformation journey. It is a tangible and proud representation of the ‘New Air India Experience’. We endeavour to set a benchmark in aviation hospitality, and this is just the beginning. Our strategic expansion plans include substantial investments to build more such platforms across countries that we fly to, which will redefine luxury and comfort for our guests,” the CEO said.
Speaking on how investments are beginning to reflect in performance, he said, “We can see material upliftment on the A350 flying to New York and London, and on Dubai and Singapore, where we fly the ex-Vistara aircraft.”
Profitability, however, has been affected by external factors. Wilson cited airspace closures, visa constraints and political changes in several markets as headwinds.
Wilson added that there are plans to introduce first class on select Airbus A350-1000s and Boeing 777s but noted that premium seat development typically takes five to seven years. “We would like it to be faster, but that’s unfortunately how long it takes to do first class well,” he said.
Supply conditions are improving gradually, though challenges remain around engines and components. “At the moment, we’re not hearing anything from manufacturers that causes concern. They seem in a better position than before,” Wilson said.
