Air India sees domestic, short-haul international routes to drive growth in 2025

Air India is set to experience significant growth in 2025, driven primarily by its domestic and short-haul international routes, thanks to the addition of more narrow-body aircraft to its fleet. Simultaneously, the airline will begin retrofitting its older wide-body planes starting next year, as per CEO Campbell Wilson’s statement on November 28. 

The Tata Group-owned airline is in the midst of a five-year transformation plan and aims to expand its fleet to 400 aircraft by 2027. Currently, the combined fleet of Air India and Air India Express totals approximately 300 aircraft. 

Wilson, who has been at the helm of Air India for over two years, shared that the airline group holds a 29 percent share of the domestic market and a 55 percent share on metro-to-metro routes. On the top 120 domestic routes, Air India controls roughly 40 percent of the market share. 

The retrofitting of Air India’s legacy wide-body aircraft will begin in early 2025. “We had initially hoped to start retrofitting our 787s and 777s sooner, but global supply chains, especially for seats, are still recovering,” Wilson explained. “Once we begin in 2025, we plan to retrofit 3-4 aircraft each month until all 40 of our legacy wide-body planes are completed.” 

Looking ahead to 2025, Wilson noted that growth will mainly come from domestic and short-haul international routes, as the majority of the new aircraft joining the fleet will be narrow-body models. The retrofitting process will also temporarily reduce the number of wide-body planes available. 

As part of its strategy to strengthen its position, Tata Group has merged Vistara with Air India and integrated AIX Connect with Air India Express. However, Wilson also acknowledged delays in the delivery of 50 white-tail aircraft, which were initially expected to join the fleet by December 2024. As of now, 35 of the 50 Boeing 737 MAX planes have been added to the fleet and are being operated by Air India Express. 

Wilson described Air India’s transformation as a ‘Test match’, emphasising that it is a long-term journey, not a quick fix. “We’re at about lunch on Day 3 of a five-day Test match,” he said, comparing the process to a long-form cricket match, which requires patience and sustained effort. 

Since Tata Group’s acquisition of Air India in January 2022, substantial progress has been made in consolidating the airline’s operations. Air India merged with Vistara and integrated Air India Express with AIX Connect, he said. 

“The heavy lifting for Air India’s transformation has already been done, including airline mergers and the establishment of new facilities,” Wilson added. “In 2025, the focus will be on achieving efficiency, consistency, and performance that will define Air India’s future.” 

Currently, the Air India Group operates a combined fleet of 300 aircraft serving 55 domestic and 48 international destinations, with a network covering 312 routes and 8,300 weekly flights. The airline also employs over 30,000 staff members. 

The Vihaan.AI transformation plan includes a commitment to acquiring over 500 new aircraft and launching a $400-million retrofit programme for its legacy fleet. 

(With inputs from PTI)