Air India begins work on Chandra’s to-do list: New aircraft

Air India was handed over to its founders, the Tata Group, back in January, nearly seven decades after nationalisation, limiting years of struggle by the government to sell the struggling airline.

As per a Bloomberg report, Tata Sons Pvt has started talks with planners and lessors for jets including the Airbus A350-900 and Boeing 787-9 Dreamliners. The report said that while the talks are at an early stage, Tata Sons has assessed the right fleet mix and has not yet taken a decision on the type of aircraft or the size of the order.

The carrier is in discussions for new Airbus or Boeing narrow-body jets that are the mainstay of Air India’s domestic and short-haul operations, as well as wide-bodied aircraft capable of flying to the US. While the airline has lucrative landing slots, the group faces an uphill task of upgrading Air India’s old fleet and transforming its financials and service levels.

According to its website, the carrier currently has 153 aircraft in its fleet. This includes 49 wide-body aircraft manufactured by Boeing and Airbus, including jets from the best-selling 737 and 320 families, making it a complex mix, with individual pilots and crew for each type of aircraft. Different skill sets are required.

According to a video reviewed by Bloomberg News, Tata Group chairman Natarajan Chandrasekaran told Air India employees at an internal company briefing earlier this month, “In terms of the fleet, we know we have to work. ” It is with utmost urgency. We will upgrade our fleet, we will modernize our fleet, we will bring in a new fleet.”

A deal for 50 brand new 787-9 jets could be worth $14.6 billion at sticker prices, although discounts are common in such large transactions. Air India, one of the world’s first buyers of the Boeing Dreamliner, operates the oldest versions of the fuel-efficient workhorse, although many of them remain closed for lack of parts.