Air India to add over 100 new planes as it pushes transformation drive
New Delhi: Air India is facing challenges due to external volatility but remains focused on the profitability path and plans to induct over 100 new planes over the next two years, its CEO Campbell Wilson said on Thursday.
The loss-making airline has been facing multiple headwinds, and a leadership transition is happening, with former Ethiopian Airlines Group chief Tewolde Gebremariam set to take over as the CEO and MD from Wilson.
During a townhall with staff, Wilson, who is likely to leave the airline next month, said the annual salary increments will come into effect from October 1.
The recently revised pay structure for pilots will also be effective on the same date, according to sources.
Earlier this year, the increment cycle was deferred by one quarter amid the West Asia turmoil significantly impacting flight operations and costs.
Talking about the future trajectory, Wilson said the group expects to induct over 100 new planes in the next two years and that 16 Boeing 787-8 aircraft are to be retrofitted in 2027, according to the sources.
He told the employees that the airline continues to make steady progress on its transformation journey despite a challenging operating environment marked by geopolitical uncertainty, airspace disruptions, fuel price volatility and macroeconomic pressures.
Currently, Air India Group, comprising Air India and Air India Express, has nearly 300 planes.
Air India has more than 185 aircraft, including the wide-body fleet of 35 Boeing 787s, 19 Boeing 777-300 ERs and 6 A350-900s. Out of these wide-bodies, 26 Boeing 787-8s are legacy ones, and 3 are brand new and were inducted this year.
In 2026, the airline is to induct 2 new Airbus A350-1000 aircraft.
Over the past six months, Wilson said airlines worldwide have faced significant headwinds, including a surge in jet fuel prices during the March-May period, and the Pakistan airspace closure increased flight times for Indian airlines by up to three hours on various Europe and North America routes.
Disruptions arising from the Iran conflict have further increased operational complexity and fuel costs. In addition, the depreciation of the rupee and softer demand on the India-US corridor due to visa restrictions and trade-related uncertainties have added to industry-wide pressures, he told the staff.
According to Wilson, during temporary network curtailments resulting from airspace restrictions, fleet improvement initiatives were carried out.
The townhall, which happens every quarter, took place at a time when the airline is facing regulatory heat over the Phuket-Delhi flight incident on August 4, wherein the aircraft suddenly lost 300 feet in altitude, and the pilot-in-command has tested positive for a psychoactive substance.
The Aircraft Accident Investigation Bureau (AAIB) is probing the incident.
It could not be immediately ascertained whether Wilson talked about the flight incident at the townhall.