Air India is accelerating its ongoing transformation to ensure that improvements on the ground are demonstrated to consumers. Air India's rebranding is helping it to overcome legacy issues such as outdated aircraft, inefficient service, and flight delays.  Through leadership growth and enhancing leadership, Air India has succeeded in becoming the first Indian airline to introduce a New Distribution Capability (NDC), a cutting-edge technology standard introduced by the International Air Transport Association (IATA), which will revolutionize the way tickets and services are sold. The implementation of the new technology enables Air India to offer a more personalized and efficient booking experience for both leisure and business travelers. These developments will definitely help Air India stay ahead of technological advancements and deliver a better travel experience.  Let us delve into the transformation story of Air India.

History of Air India

Air India was founded in 1932 by Jehangir Ratanji Dadabhoy Tata as Tata Airlines. Although the name of the airline was Tata Airlines, Tata Airlines expanded from a division of Tata Sons to a company, and Air India appeared in 1946. It appeared only after a poll of opinion among employees, where employees were presented with the options of Indian Airlines, Pan-Indian Airlines, Trans-Indian Airlines, and Air India. As a result, the most votes were cast for Air India, and then the name came into existence. After World War II, Air India became a joint stock company when the Government of India enacted the Airline Companies Act and Tata Sons acquired a majority stake in Air India in 1953. JRD Tata served as chairman until 1977.

However, as budget airlines began to enter the market, Air India's market share declined and so did the futile attempt to privatize Air India. As a result of the competition, the government decided to merge Air India and Indian Airlines, and the merger was completed in 2006.

After the merger of Air India and Indian Airlines, Air India began to suffer losses because the Ministry purchased 111 new wide-body aircraft costing Rs. 67 million. Air India lost about Rs. 570 million due to additional fees approved by then Managing Director, Michael Mascarenhas.

In 2006-07, Air India incurred total losses of Rs.7.7 billion, which reached Rs.72 billion in March 2009. In total, Air India had a debt of Rs.26 billion and an operating loss of Rs.220 billion while demanding RS.429 billion from the government. To get Air India out of insolvency, the then government provided Air India with equity funding of Rs. 30,000 crore over 10 years; by August 31, 2021, Air India's total debt stood at Rs. 61,652 crore.

Tata Group to the Rescue

The Tata Group won the financial bid to acquire the debt-ridden national carrier Air India on October 8, 2021, acquiring a 100 percent stake in Air India for Rs. 18,300 crore. After three major attempts over two decades, Air India was returned to its original owner, the Tata Group. The handover began on January 27, 2022, along with a non-investment process. The Tata Group drew up a 100-day blueprint to improve Air India's operations and service standards, and to achieve this, the Tata Group must retain all 12,085 employees for at least one year.

Change in Leadership

Air India, part of the Tata Group, has made senior-level appointments to strengthen its operations and management team. Air India has appointed Major Klaus Goersch as Executive Vice President and Chief Operations Officer to oversee Flight Operations, Engineering, Ground Operations, Integrated Operations Control (IOCC), and Cabin Crew functions. He will oversee Flight Operations, Engineering, Ground Operations, Integrated Operations Control (IOCC), and Flight Crew functions.

The Chief of Operations, Capt RS Sandhu, was transitioned to an advisory role focusing on the harmonization of the four Tata Airlines’ operating procedures, the Airbus A350 entry-into-service program, and assisting the team in establishing Air India’s new Training Academy. Capt Manish Uppal was appointed as Senior Vice President of Flight Operations. Capt Henry Donohoe’, who holds responsibility for Corporate Safety, Security, and Quality, oversees Emergency Response and is retitled Senior Vice President of Safety, Security, and Quality.

The Biggest Aircraft 

Air India, after being a part of the Tata Group, made then-largest aircraft purchase order in the world by placing an order for more than 500 aircrafts from Airbus and Boeing. At the 2023 Paris Air Show, Air India signed the historic purchase of up to 290 Boeing Single-Aisle and wide-body jets, including 190 737 MAXs, 20 787 Dreamliners and 10 777X jets with options for 50 737 MAXs and 20 787 Dreamliners.

On the other hand, Air India recently restructured its order for 250 aircraft placed with Airbus, consisting of 210 narrow-body A320 family aircraft, including 140 A320neo and 70 A321neo aircraft. The order has now been changed to 140 A321neo and 70 A320neo aircraft. The remaining 40 widebody A1350s include six A350-900s and 34 A350-1000s. According to a report, the airline has fine-tuned its widebody order to 20 A350-900s and 20 A350-1000s.

With the return of the Maharaja after 68 years, the sale of India's national carrier was completed on January 27, 2022, with the government completing the handover of Air India and its subsidiaries Air India Express and AISATS to the Tata Group.

MRO Facility in Bengaluru

A major maintenance, repair, and overhaul (MRO) facility built by the Air India Group at Bangalore International Airport in Bengaluru will soon be completed. As Air India modernizes its fleet and expands its global operations, the facility will serve as an important hub for Air India Group Airlines' aircraft maintenance activities in the region. Air India also signed an agreement with SIA Engineering Company (SIAEC) as a strategic partner in the development of this MRO facility. The MRO is expected to create more than 1,200 new employment opportunities for skilled aviation engineers in India and provide support to more than 200 SMEs in Karnataka.

The upcoming MRO will feature a mega hangar capable of servicing wide-body and narrow-body aircraft under one roof. The facility's capacity will be further expanded to include additional hangars to service more aircraft, including a paint hangar. Equipped with the latest aircraft maintenance technology, this MRO facility will set a new standard for aviation maintenance that will rival any MRO in the world.

To meet line maintenance needs, Air India is planning to build a new wide-body hangar in Delhi that will contribute to the growing ecosystem for comprehensive airport maintenance at all major airports.

 

In addition, by obtaining CAR-147 approval for a training academy, Air India is ensuring that it has the necessary trained type holders for various aircraft maintenance functions. Air India intends to establish a Basic Maintenance Training Organization (BMTO) in Bengaluru in 2025 to ensure a steady supply of skilled workers for engineering and aircraft maintenance operations.

Air India has strengthened its operational capabilities through strategic contracts, including a 12-year Inventory Technical Management (ITM) contract with SIAEC to support the Airbus A320 family, a multi-year agreement with Lufthansa Technik for Total Component Support (TCS) for the Boeing 777, and a long-term contract with Honeywell for aftermarket support of auxiliary power units (APU) for both existing operational capabilities through strategic contracts.