Air India was once so well-known for its service that Singapore’s founding statesman Lee Kuan Yew used the airline as a template for launching the city-state’s own flagship airline in the early 1970s.
In recent decades, India’s national airline has been viewed as a cautionary tale of decline, racking up billions of dollars in losses and struggling with a reputation for late arrivals and poor service.
When the Tata Group bought the company in October 2021, handing control back to the wealthy Tata family after decades of state ownership, CEO Natarajan Chandrasekaran set a clear goal: “To build a world-class airline.”
Tasked with leading this mission is Air India CEO Campbell Wilson, who was recruited by Singapore’s low-cost airline Scoot in 2022 to turn around the airline founded in 1932 by French-Indian aviation entrepreneur JRD Tata.
“Standards have dropped significantly over the years,” Wilson said in an exclusive interview with Al Jazeera.
But Wilson is adamant that “the journey to restoring Air India’s former glory is already well underway” under a five-year turnaround plan unveiled last year.
The Tata Group has poured tens of billions into transforming the company in recent years, investing in 470 new aircraft, cabin modernization, a brand refresh and changes to customer service.
After completing the “capital-intensive” five-year plan, Air India hopes to tap the huge growth potential of India’s aviation market, which is the third largest in the world with around 145 million domestic passengers annually.
The Tata Group’s first priority was its aging fleet, whose maintenance had been neglected for decades.
Shortly after the ownership change, Air India added 36 leased aircraft – 11 Boeing 777s and 25 Airbus A320s – allowing the airline to introduce six new international routes and increase frequency to another 24.
Air India’s biggest investment came with the announcement of plans to purchase 470 new Airbus and Boeing aircraft worth $70 billion, including 140 A320neos, 70 A321neos and 190 of the 737 MAX.
Wilson said the acquisitions would enable Air India to “operate the most advanced and fuel-efficient fleet within five years.”
The airline also plans to spend $400 million to retrofit its existing fleet by renewing cabin interiors.
Wilson said the upgrade will initially focus on the airline’s narrow-body A320neo and A321neo aircraft, after which 40 older wide-body Boeing 777 and 787 aircraft will receive a “complete makeover with all new interiors.”
Other changes to improve in-flight service include the introduction of premium economy seats on select long-haul flights and new dining menus.
Henry H. Harteveldt, president of the Atmosphere Research Group, said Tata Group’s investments could help lay a foundation for Air India’s success, but the changes would not matter much if the airline fails to to be reliable and punctual.
Above all, Air India should strive to be seen as “the punctuality machine,” Harteveldt told Al Jazeera.
“If a service is not considered reliable, customers will not dare to book with that airline,” he said.
Damaged relationships
Tata Group’s biggest challenge may be getting to grips with Air India’s damaged relationship with its customers.
Aside from recurring problems with reliability and punctuality, the airline’s image has been tarnished by high-profile controversies surrounding its customer service, such as an incident in February in which an 80-year-old passenger collapsed after being forced to walk 1.5 km (2.1 mi). .4 km) to walk from the plane to the immigration counter due to a lack of wheelchairs.
John Gradek, an aviation management expert at McGill University in Montreal, Canada, said Air India’s fleet renewal efforts will not revive the airline’s success if it fails to establish a “new customer service mentality among its customer-focused employees” – a task that proved difficult “for many airlines looking to expand their international brand.”
More than two years after Tata Group acquired Air India, the airline’s turnaround plan has completed its first phase.
Successes to date include a $200 million investment in new IT to increase reliability and the hiring of more than 3,800 new employees across multiple areas to support growth.
Harteveldt said the investment in IT was particularly welcome as Air India “has long suffered from a lack of technology due to the Indian government’s inability or unwillingness to adequately invest in the airline”.
For the Tata Group, progress continued through 2024 with the planning of new international routes using the newly delivered Airbus A350-900 between Delhi and Dubai.
Further changes, such as the consolidation of airline Vistara into Air India, are expected to be Tata’s focus for the rest of 2024, in line with Chandrasekaran’s view that the consolidation is “an important milestone in the journey of becoming Air India.” “to make a truly first-class airline”. .
There are also internal issues with its subsidiary Air India Express, which operates both domestic and international flights. At least 90 flights have been canceled since Tuesday as more than 100 crew members called in sick at the last minute, in what was essentially a strike action reportedly over pay issues and related matters.
The cancellations at the Indian budget airline represent owner Tata Group’s second setback in as many months, as Vistara was forced to adjust its schedule with flight cancellations as recently as April due to a pilot shortage.
Harteveldt said the “devil is in the details” when it comes to airline mergers.
If airline teams can be “transparent and even humble,” operational glitches in the first few months of integration could be resolved, he said.
After being in the hands of the government for more than half a century, the recovery is expected to take time, Harteveldt said, but there is “no reason in the world why Air India should do so with the right investments and the right focus.” “cannot successfully distinguish itself from other India-based airlines”.
Wilson said Air India’s long-term goal is to increase its domestic and international market share to 30 percent by 2027.
The aim is to create an airline that is “bold, confident and vibrant, but also warm and deeply rooted in its rich history, traditions and warm Indian hospitality,” he said.
However, Wilson said he is under no illusions that the turnaround will happen overnight.
“It’s a marathon, not a sprint,” he said.