Air India Expansion Plans On Pause As Delays In Aircraft Delivery Hinder Growth: CEO Wilson

The airline currently has an order book of 570 aircraft—350 from Airbus and 220 from Boeing. Of these, 20 Airbus jets, including six wide-bodies, have already been delivered.

Global supply chain disruptions at Boeing and Airbus continue to affect multiple carriers.

Source : PTI

Air India's expansion plans are set to face hurdles in the upcoming fiscal as aircraft delivery delays and ongoing refurbishments of wide-body planes constrain fleet growth. According to CEO and Managing Director Campbell Wilson, the Tata Group-owned airline, along with its low-cost subsidiary Air India Express, will receive multiple narrow-body aircraft this year, supporting domestic and short-haul international expansion in the latter half of FY26.

"Well, our operating fleet is going to be pretty flat this year (FY26), in part because of delays to delivery, but also because we're taking aircraft out of service to do the refit, the Boeing B787s and the B777s in particular. And so, it means that we're actually not able to grow. But it's an investment for a good purpose," Wilson explained, reported The Economic Times.

Fleet Composition and Ongoing Upgrades

Air India's fleet currently stands at 198 aircraft, including 70 inherited from Vistara, the now-defunct joint venture between Tata Sons and Singapore Airlines. Its low-cost division, Air India Express, operates 103 planes—36 Airbus and 67 Boeing jets—including 38 newly inducted Boeing aircraft from an October 2023 order. Another nine narrow-body aircraft are expected to join the fleet by June.

Since Tata Group took over in early 2022, Air India’s capacity has expanded sixfold. The airline is also undergoing significant aircraft modifications, with two of its 27 A320neo planes already upgraded and the rest scheduled for completion by the September quarter. B787-8 retrofits are slated to commence in April, alongside interim enhancements to 13 B777s. Additional narrow-body aircraft may also be considered for upgrades.

"There's a couple (wide-bodies) that are coming this year, but there's also a couple that are going this year for retrofit and some are old aircraft. Also, some that are coming to the end of their lease. So, we just have to navigate this period of flat capacity," Wilson noted.

Shift Towards Regional Expansion

With wide-body aircraft supply constrained, Air India is pivoting towards strengthening its domestic and regional international presence. "The domestic and short-haul international will be the one that's growing tremendously. It's not because that's what we want to do, it's just what we have to do. And that's largely because the aircraft deliveries that we're getting are narrow-body aircraft. And then we're flat with the wide-bodies because of the refit," Wilson stated.

Since its acquisition by Tata Group, Air India's short-haul network has grown substantially. The airline increased weekly flights from 323 in January 2022 to 750 by January 2025. Services to the Middle East rose from 228 to 304, while Southeast Asia flights surged from 29 to 264. Routes to SAARC countries also expanded from 66 to 182, positioning Air India as a hub carrier with improved regional connectivity.

The airline currently has an order book of 570 aircraft—350 from Airbus and 220 from Boeing. Of these, 20 Airbus jets, including six wide-bodies, have already been delivered. Reports suggest Air India is also in discussions to acquire additional wide-body jets from Airbus and Boeing to support future long-haul expansion.

Supply Chain Bottlenecks Impacting Growth

Air India is not alone in grappling with aircraft delivery setbacks. Global supply chain disruptions at Boeing and Airbus continue to affect multiple carriers. In February, Boeing estimated that deliveries to Indian airlines, including Air India and Akasa Air, would be limited to about two aircraft per month through the current fiscal year.

Wilson, speaking at an industry event in Delhi, warned that aircraft shortages could persist for another four to five years, posing further challenges to airlines’ expansion plans.