Air India CEO: Aircraft Shortage to Persist for Several Years
Air India’s CEO, Campbell Wilson, has warned that the global aircraft shortage, which is impacting airline growth, will persist for at least the next four to five years. This situation, stemming from production delays at Boeing and Airbus, is hindering the Indian airline’s fleet renewal and expansion plans.
During an event organized by the travel news portal Skift, Wilson highlighted that the main bottlenecks are affecting the availability of engines for narrow-body aircraft, business and first-class seats, as well as certain fuselage components.
Impact on Air India’s Restructuring
Since the Tata Group took control of the airline two years ago, Air India has launched an ambitious transformation plan. However, delays in aircraft deliveries have complicated this process, forcing the company to keep older aircraft in service longer than anticipated. This has increased maintenance costs and slowed modernization efforts.
When asked about the airline’s strategies to address these delays, Wilson admitted, “There’s not much we can do. We are victims of circumstances, just like the rest of the airlines.”
→ Air India Unveils Its First Modernized Aircraft with New Cabins and Livery
Intense Competition for Aircraft Leasing
The aircraft shortage has also sparked fierce competition for leasing aircraft, further complicated by the diversity of configurations available in the market. Wilson noted that due to capacity constraints, the airline must be more selective in allocating its aircraft to maximize profitability. “It means we can’t expand to certain destinations we would like to fly to,” he explained.
Ambitious Order for 470 Aircraft on Hold
In 2023, Air India placed a historic order for 470 aircraft from Airbus and Boeing, including 10 units of the delayed Boeing 777X and 190 Boeing 737 MAX. Late last year, the airline added an additional 100 Airbus aircraft to its order.
However, uncertainty remains regarding the delivery of the Boeing 777X. On this matter, Wilson simply said, “Who knows?” reflecting the concerns of airlines awaiting this model, which is considered the successor to the successful Boeing 777 for long-haul routes.
Boeing and its production problems
Boeing is still recovering from a nearly two-month labor strike in 2024 that halted its production. Currently, the manufacturer faces restrictions imposed by the U.S. Federal Aviation Administration (FAA), limiting its production of the 737 MAX to no more than 38 units per month, exacerbating the shortage.
Given these challenges, Air India has decided not to exercise its option to purchase additional Boeing aircraft until the manufacturer can reduce its backlog of pending orders.
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