Air India, which has emerged as the fourth-largest revenue generator for the Tata Group, is looking to turn profitable by prioritising operational efficiency through the strengthening of existing practices and processes, CEO Campbell Wilson told employees on Friday.
In an internal communication reviewed by ET, Wilson said the airline has started refitting its narrowbody aircraft, and the refurbishment of legacy widebody planes is slated to begin in 2025. “We will strengthen and tighten our practices and processes so that we are not just consistent, we are also efficient and, ultimately, profitable,” he said.
Air India has been making losses since its merger with Indian Airlines in 2007. While the losses have narrowed significantly in recent years, it is yet to turn a net profit.
In FY24, AI sharply reduced its consolidated net loss to INR 4,444.10 crore, from INR 11,387.96 crore in FY23. Consolidated revenue during the year rose 24 percent to INR 51,365 crore in FY24. Detailing the airline’s ongoing transformation initiatives, Wilson said, “We commenced the interior refit of our full-service narrowbody fleet. 2025 will see progress on many more key initiatives, such as refitting our widebody and remaining narrowbody aircraft with new seats and services, elevating Air India’s service standards, raising the bar on what we consider ‘good’, and more consistently delivering to those new expectations.”
AI has earmarked USD 400 million for refurbishing 67 legacy aircraft with new seats, upgraded in-flight services, and improved cabin products.
