What’s Next for Air India After Completing the First Phase of its 5-Year Turnaround Plan?

Air India has completed the first phase of its five-year transformation plan, Vihaan.AI, which aimed to address the airline’s legacy issues and lay the groundwork for future growth. The Tata Group took over management and control of the airline in January 2022, having purchased it from the Indian government for Rs 18,000 crore. In September 2022, Air India unveiled Vihaan.AI, a multi-stage transformation roadmap with the objective of becoming a “world-class global airline with an Indian heart.”

Following the completion of the first phase, Air India is now focusing on the Take Off phase of the transformation plan, which aims to develop the necessary platforms, processes, and systems required to achieve excellence. The group airlines AirAsia India and Air India Express will be consolidated during this phase, and Vistara will be merged with Air India once regulatory approval is granted.

Air India

In recent months, Air India has made an unprecedented order for 470 aircraft and announced significant investments in refurbishing existing aircraft and IT upgrades.

CEO Campbell Wilson has expressed his satisfaction with the first phase of Air India’s transformation plan, stating that it has brought the company together in pursuit of a common goal, and has made significant progress in resolving many long-standing issues. These include a record-breaking order for new aircraft, the allocation of $400 million towards the complete refurbishment of existing planes, a $200 million investment in new IT, and the recruitment of thousands of new staff. These investments are part of a larger effort to restore Air India to a position of global prominence within the aviation industry.

During the first phase of the transformation plan, Airline made a number of other important changes, such as revamping menus on international and domestic flights, introducing premium economy seats on select long-haul routes, and bringing some of its customer service functions in-house. In addition, the airline settled more than 10 lakh legacy refund cases between February and December 2022 and onboarded over 3,800 new employees to support growth and improve the customer experience. It also implemented a new organizational structure and revamped roles across all levels of the company.

As part of its efforts to expand its fleet and reach, Air India leased 36 new aircraft, including 11 widebodies, in 2022-23. This allowed the airline to add 6 new international routes and increase the frequency of flights on another 24 routes.

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