Air India to beef up fleet ahead of holiday season: Report

The Tata Group has reportedly drawn up an aggressive expansion plan for Air India, and is looking to induct several aircraft into its fleet in the coming months to boost connectivity ahead of the holiday season.

According to a report by the Economic Times, while the Tata Group is in the process of closing orders for 200 narrow-body and wide-body aircraft, to be inducted into the Air India fleet in the near future, the conglomerate is also looking to lease a handful of aircraft to boost its capacity in the short term.

Reportedly, Air India is looking to induct six Boeing 777-200s and 25 Airbus A320 Neos by the first quarter of next year. The Boeing 777-200s will be leased from US carrier Delta, which phased out 18 such planes during the Covid-19 pandemic.

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The six Boeing 777-200s are expected to be inducted into the Air India fleet by October, well ahead of the holiday season. The new additions will be used to fly India-US routes, which, as per the ET report, are the most profitable for the airline.

The Airbus A320 Neos, meanwhile, will be leased from the secondary market and will be inducted into the fleet from early next year. Unlike the Boeing 777-200s, which can fly lengthy routes, the narrowbody Airbus A320 Neos will be deployed along domestic routes to boost connectivity within India.

“These aircraft are being leased for a shorter duration to bridge the gap till new aircraft join,” a person familiar with the plan told ET.

Additionally, Air India is also looking to get 10 of its grounded wide-body aircraft operational: of its current fleet of 43 wide-body aircraft, only 33 are operational, and the reinstatement of the 10 grounded aircraft will help the airline boost its capacity.

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Meanwhile, Air India’s subsidiary, Air India Express, which mostly operates on India-Middle East routes is also looking to boost capacity by leasing five Boeing 737 aircraft from Vistara.

“The airline has decided for a nominal increase in capacity expansion, keeping in mind the upcoming heavy traffic season to Dubai and Qatar due to the FIFA World Cup. New destinations will also be added when new aircraft join the fleet,” ET quoted a person familiar with the plan as saying.

As it stands, the three airlines owned by the Tata Group, namely, Air India, Air India Express, and Vistara, hold a 24% share in the Indian civil aviation market.