Air India: Exciting Prospects for Expanding Long-Haul International Routes!

This month marks three years since Air India was privatized, and the airline is thriving, especially on international routes. Their growth in passenger numbers to places like the U.S., Europe, and Australia has been impressive.

When the Tata Group took over Air India in January 2022, the airline held a 16% share of international passengers. Today, that share has climbed to 21%. Air India is the only Indian airline offering non-stop flights on many of these routes since Jet Airways ceased operations in 2019.

Nipun Aggarwal, Air India’s Chief Commercial Officer, expressed excitement about their prospects in long-haul travel. He noted that Indian airlines currently account for only 21% of international passengers, indicating significant growth potential ahead, possibly up to 50%.

Beyond international growth, Air India is focused on domestic routes. It holds a 30% share in the market for flights between major Indian cities. This strategy allows them to funnel passengers from cities like Delhi, Mumbai, and Bengaluru onto international flights, while their low-cost arm, Air India Express, helps connect smaller cities.

Long-haul flights are crucial for revenue, responsible for $16 billion out of $34 billion in total revenue for FY 2024, even though they represent just 11.7% of total passengers.

To boost their international offerings, Air India aims to attract traffic that currently connects through foreign hubs like Dubai and Singapore. They also want to pull in passengers from the SAARC nations and Southeast Asia, increasing their international-to-international transit passengers from 10% to 20% within a few years.

Fleet expansion plays a big role in these ambitions. Air India has acquired 11 leased Boeing 777s, six Airbus A350s, and Boeing 787-9 Dreamliners from Vistara for high-demand routes such as New York, San Francisco, and Frankfurt. Their existing fleet of widebody aircraft will undergo upgrades by late 2025, adding more premium seating to attract higher-paying customers.

Additionally, Air India plans to introduce First Class cabins on its new Airbus A350-1000s. The first of the new Boeing 787-9s will arrive in late 2025, part of a larger order for 570 new airplanes, with 41 already added since 2023.