Air India has begun refurbishing its older aircraft, introducing upgraded cabins on older aircraft, introducing new aircraft and introducing premium airport lounges as part of a broader drive to boost revenues and return to profitability.
The airline is now shifting its focus on high-value passengers to improve profits and move back towards profitability.The airline is investing around $400 million (Rs 3,622 crore) to upgrade aircraft cabins across its fleet of wide-body aircraft, including the earlier Boeing 787 and 777 aircraft, which have faced passenger complaints about worn-out seats and poor food quality.The Tata Group-owned carrier is focusing on premium traffic, with chief customer officer Rajesh Dogra confirming that eight Boeing 787-8 aircraft will operate this year with completely revamped interiors, ET reported. Earlier on Sunday, Air India introduced its first modified Boeing 787 aircraft, which is scheduled to enter service on European routes soon. The upgraded Business Class features suite-style seats with sliding privacy doors, plus enclosed storage compartments, redesigned seat controls and adjustable armrests that include built-in water bottle storage. The aircraft was originally delivered to Air India in 2015, during the state ownership phase.
“Cabin quality has been one of the key pain points in our transformation journey which we have always wanted to address. We are rapidly modernizing the backbone of our long-haul fleet and raising the bar for customers traveling between India and the world,” Dogra told the financial agency.Along with the fleet updates, the company is also set to induct about six wide-body aircraft this year and expand its ground infrastructure with new premium lounges at key international gateways, including San Francisco and New York.
In February, it opened the first lounge of its kind in Delhi, its headquarters.These changes are expected to help Air India attract more high-value passengers, supporting improved ticket revenues, Dogra said. Premium cabins, especially business and first class, remain important revenue drivers for airlines, often offsetting lower fares in economy class.“We are already seeing the benefit of operating aircraft with new interiors on routes such as Dubai, New York and London,” Dogra said. “As more and more new aircraft come on board, it will get better.”According to the airline, customer satisfaction has also shown significant improvement, with Net Promoter Score rising significantly following the introduction of new aircraft and refurbished cabins.