Air India to cut fares, add new jets and boost reach to woo diaspora

Air India, in order to enhance its appeal, has worked on reducing airport transfer times to within 180 minutes and is further streamlining the travel experience

Air India is set to offer cheaper fares to attract the estimated 35 million-strong Indian diaspora, as part of a broader expansion strategy aimed at offsetting the impact of ageing cabins and upgrade delays. The airline’s chief executive officer, Campbell Wilson, outlined the plan in an interview with Bloomberg.

 

“People choose an airline for many things — price, travel duration, affinity with the culture or the food, or just the perception of quality,” Wilson said. Addressing inconsistencies across the airline’s fleet, he noted that pricing would be adjusted accordingly, although no specific discount details were shared.

 

Expansion efforts

 

Air India is currently operating at a loss as it undertakes extensive domestic and global expansion to challenge low-cost market leader IndiGo. Wilson did not comment on a break-even timeline, citing the airline’s private ownership, according to the Bloomberg report.

 

 

The Indian diaspora remains a core demographic for the airline. To enhance its appeal, Air India has worked on reducing airport transfer times to within 180 minutes and is continuing to streamline the overall travel experience.

 

Growing global presence

 

As of 2024, Air India operated 51 weekly flights to the United States and 80 weekly flights to Europe, along with services to other international destinations. The airline’s fleet currently consists of 198 aircraft, including 70 inherited from Vistara, the former Tata Sons–Singapore Airlines joint venture.

 

Air India Express, meanwhile, operates a separate fleet of 103 aircraft, comprising 36 Airbus and 67 Boeing jets. This includes 38 new Boeing planes from an October 2023 order, with nine more narrow-body aircraft expected to be added by June 2025.

 

Air India’s first Boeing 787 with its new livery is expected to arrive in the second half of 2025. Air India Express will also receive nine B737 MAX aircraft as part of its ongoing expansion. Together, Air India Group currently serves 56 domestic and 44 international destinations.

 

Shift to hub model

 

When Tata Group acquired Air India in January 2022, the airline operated 323 weekly short-haul flights — 228 to the Middle East, 29 to Southeast Asia and 66 to SAARC countries. By January 2025, this figure had increased to 750 — 304 to the Middle East, 264 to Southeast Asia and 182 to SAARC destinations.

 

The shift to a hub model, combined with increased frequencies on Southeast Asian routes, has supported Air India’s expansion objectives.

 

Fleet expansion

 

Air India currently has an order book for 570 aircraft — 350 from Airbus and 220 from Boeing. So far, 20 Airbus aircraft, including six wide-body jets, have been delivered.

 

In addition, media reports suggest that Air India is in discussions to acquire more wide-body aircraft from both Airbus and Boeing, indicating that further expansion is on the horizon.