Tata adds wind beneath Air India’s wings by leasing 30 aircraft for ambitious fleet expansion

Couple of years the future looked bleak for debt-ridden Air India as the country’s national carrier had flown into turbulent skies. Hopes for a recovery had crashed as the government was mulling a shut down for the airline if it wasn’t privatised. But that was before the firm that first launched Air India, Tata once again entered the race to lift it out of a crisis with an Rs 18000 crore bid.

To help the iconic carrier take off towards a recovery, Tata has leased 30 new aircraft which will propel Air India’s global and domestic operations for the next 15 months. The new fleet includes 25 narrow-body Airbus aircraft, and five wide-bodied airplanes from Boeing. This addition will expand Air India’s fleet by 25%, along with the 10 narrow-body and six wide-body aircraft which have become operational after being grounded.

More options for travelers?

As part of the expansion, travelers from Mumbai can catch Air India flights to San Francisco and both airports in New York, while Bengaluru passengers will get a three-time weekly service for San Francisco. Narrow-bodied Airbus aircraft will be used for scaling up domestic and short-haul international flights for Air India.

Despite being considered an ailing airline, Air India was able to double the number of destinations it flew to during the pandemic, for bringing back stranded Indians. It also successfully rescued Indians escaping Ukraine after a Russian invasion of the country earlier this year.

An overhaul on the horizon

As for its recovery, reports by Mint have also suggested that Tata is raising $4 billion through a combination of equity and hybrid debt, to boost Air India with fresh capital. Air India has also acquired Tata Sons’ 83% stake in low-cost airline AirAsia for a merger as part of the expansion plan. Tata Group currently operates four carriers, Air India, Air India Express, AirAsia and Vistara.

Among other developments post the acquisition by Tata, Air India is also set to restore salaries to pre-covid levels, and will be wrapping up its regional command structure to move to a central headquarters in Gurugram.