Air India to Add 70 New Aircraft in Its Fleet by March 2024
Radhika Bansal
06 Jun 2023
With the return of its founder Tata Group, Air India has been put on the fast track to rapid expansion after many years as a state-owned carrier with no fleet or personnel expansion. By March of next year, the airline will have 19 wide-body and 50 narrow-body aircraft. Air India is also adding 550 cabin staff members and 50 pilots each month to support this growth. With North America and Europe being the priority regions, adding new aircraft will enable the airline to address one of the top complaints of passengers—the existing fleet's decrepit cabins—and expand its worldwide network. Recently, the airline placed orders for 470 aircraft, including 70 wide-body aircraft.
“We will be inducting 19 new wide-body aircraft by the end of next March. (Once that happens) from mid-2024, we will send our 40 existing wide-body (27 Boeing 787s and 13 B777s) aircraft for a complete refurbishment. Their interiors will be completely scrapped and these planes will get everything brand new from seats to inflight entertainment and onboard Wifi as part of our USD 400-million upgrade project. By mid-2025, all our twin aisles will have absolutely new cabin products,” Air India MD & CEO Campbell Wilson told TOI.
The new wide bodies being inducted this fiscal, starting with the Airbus A350s, will have onboard WiFi. While 17 of the 19 twin-aisles will be used for augmenting the fleet, Air India has recently started talks for inducting two more B777s so that it can retire two wide bodies. The narrow-body fleet makeover will be faster with a majority of the Air India group’s full-service single-aisles getting a facelift by next September.
“We are going to induct 50 single-aisles this fiscal. By September 2024, 75-80% of our full-service single aisles will be brand new,” he said. The remaining 20-25% will be refurbished for being used by the low-cost arm, Air India Express. This means in two years, Air India’s full-service arm planes would have completely new interiors. Air India had been facing crew shortage due to which this March it had to suspend six of the 47 weekly non-stops to the US.
A320 Neo Aircraft to also be inducted
A few of its Airbus A320neo aircraft were also not being used for the same reason. Now with 600 crew joining every month and almost 200 Go First pilots onboard, the crew shortage seems to have been sorted out. “We are reinstating three of those (suspended US) flights this month and the remaining three next month. We are now hiring 5 and 10 times more pilots and cabin crew per month, respectively, than AI used to hire a year earlier,” Wilson said.
Armed with more A320 pilots, Air India has asked Airbus to give it more planes quickly. The reason is Go First, which suspended flights on May 3, had over 80 Airbus A320neo family planes still on order that were yet to be delivered but got no planes in the past several months due to its financial condition. Sources say Go First was to get 8-10 A320neos in the past few months and those delivery slots are available with Airbus. Apart from foreign carriers, both IndiGo and AI have put in requests to get these planes. “We have spoken to Airbus, seeking faster deliveries and they are yet to decide. We will want to take these planes with CFM engines (Go First used Pratt & Whitney). Airbus can deliver that combination with the required lead time,” he said.
Air India assesses customer satisfaction by sending questionnaires
As it works on improving services, Air India is sending out questionnaires to customers to every day and has received good responses through its digitalised customer feedback mechanism. Air India, which was taken over by Tata Group in January last year, started sending questionnaires to travellers to identify areas for improvement to meet customer expectations in March.
The Net Promoter Score (NPS)-based customer feedback mechanism has received more than 1,40,000 responses in three months, the airline said in a release. In his message to staff, Air India CEO and Managing Director Campbell Wilson said that over the last three months, the airline had expanded NPS to cover the entire physical customer journey, from check-in, through to lounges, in-flight experience and the arrival process, and will be extended to the online and call centre experiences.
"Questionnaires are sent every single day, and so far we've had more than 1,40,000 responses. Pleasingly, although we're short of where we aim to eventually be, we've seen a significant improvement in NPS compared to last year's benchmark, and there are many areas where we are doing very well," he said.
He said domestic and short-haul international routes have scored well as airport operations at places like Pune, Kolkata and Trivandrum. "As expected, the long haul routes operated by our legacy 777 and 787 aircraft are not rated so well due to the dated seats and IFE (In Flight Entertainment) systems... which is of course why we're preparing to refit these interiors starting next year so that they complement those on all the brand-new aircraft we have coming!," Wilson said in the message.
According to the release, the NPS mechanism also marks a significant shift from a paper-based feedback system to an advanced digitalized interface. It identifies key parameters that influence customer satisfaction at every touchpoint, whether on the ground, on board, or post-flight experiences, effectively capturing customers' sentiments. Air India plans to expand the NPS mechanism to measure improvements across all functions, including services provided by caterers, ground handling agents and airport operators.
(With Inputs from The Times of India)
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Thai Airways Looking to Dispose of its A380
Abhishek Nayar
06 Jun 2023
Thai Airways, Thailand's national carrier, has long been a vital part of the country's aviation environment. The airline has played a significant role in connecting Thailand with the rest of the world, with a rich history and a commitment to excellence. As demand for air travel expands, Thai Airways recognizes the need to expand its fleet and improve its operations. To satisfy this demand, the airline is going to issue an RFP for the acquisition of a large number of twin-aisle aircraft suitable for both long-haul and short-haul operations.
Thai Airways Overview
Thai Airways is Thailand's national carrier and has been carrying passengers since its inception in 1960. The airline has earned a reputation for its dedication to service quality, safety, and dependability throughout the years. Thai Airways has become associated with Thailand's tourist sector and has a global network of destinations.
The Need for Aircraft Acquisition
Thai Airways recognizes the significance of extending its fleet to meet rising demand, given the increasing popularity of air travel and Thailand's burgeoning tourism sector. The purchase of additional aircraft would not only allow the airline to carry more passengers, but it would also increase operational efficiency and provide better services. Thai Airways intends to increase its market position by adding additional aircraft to its fleet in order to capitalize on the predicted growth in air travel.
The Request for Proposals (RFP)
Thai Airways, Thailand's national carrier, is now launching a Request for Proposals (RFP) to buy up to 30 twin-aisle aircraft for both long-haul and short-haul operations. To satisfy the expanding demands of the nation's aviation industry, the airline plans to increase its fleet and strengthen its operating skills.
Specifications and Objectives
Thai Airways intends to use the RFP procedure to acquire up to 30 twin-aisle aircraft. Twin-aisle aircraft, often known as wide-body aircraft, are favored for their ability to accommodate a large number of passengers while simultaneously offering substantial cargo space on long-haul flights. When evaluating the proposals, the airline will consider elements such as fuel efficiency, impact on the environment, and technological advancements.
Airbus A380 Aircraft Disposal
Thai Airways intends to dispose of six of its dormant Airbus A380 aircraft as part of the aircraft acquisition discussions. Several considerations, notably the operational expenses associated with running the A380 and the changing needs of the aviation industry, have influenced the decision to retire this aircraft. The airline's CEO, Chai Eamsiri, announced the move during the International Air Transport Association (IATA) Annual General Meeting (AGM) on June 4, 2023, in Istanbul, Turkey.
By retiring the A380s, the airline will be able to optimize its fleet composition and better match it with its future growth goals. Thai Airways' operations and financial prospects will be significantly impacted by the decision to retire these aircraft.
Potential Suppliers and Industry Response
Thai Airways' announcement about the RFP and the disposal of its Airbus A380 aircraft garnered a lot of attention in the aviation sector. Aircraft manufacturers and leasing firms are keeping a careful eye on the situation, and several have shown an interest in participating in the RFP process.
Impact on Thai Airways' Future
The procurement of new aircraft via the RFP procedure bodes well for Thai Airways' future. With the acquisition of contemporary, fuel-efficient twin-aisle aircraft, the airline will be able to provide better services to its passengers while decreasing its environmental impact. Thai Airways will be a competitive competitor in the global aviation market because of its greater capacity and enhanced operating skills.
In conclusion, Thai Airways' announcement of an RFP for the acquisition of twin-aisle aircraft is a significant step forward in the airline's growth and development. Thai Airways intends to expand its fleet in order to meet rising demand for air travel, improve the customer experience, and strengthen its market presence. The sale of the Airbus A380 aircraft underlines the airline's determination to adapt to changing industry dynamics and embrace more environmentally friendly practices. As Thai Airways advances through the RFP process, the future appears bright for both the airline and Thailand's aviation sector as a whole.
With Inputs from AeroTime
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Air India CEO Believes India Needs More Non-Stop International Connectivity
Radhika Bansal
05 Jun 2023
India has, in some respect, not been able to control its destiny as a consequence of not having a healthy domestic airline industry, according to Air India chief Campbell Wilson. "As a consequence of not having a healthy domestic airline industry, India has in some respects is not able to control its destiny. Some foreign airlines coming into India have been the ones that have reaped the benefits of the growing Indian market as opposed to the Indian airlines," Wilson said in an interview with newswire agency PTI.
Terming Go First's insolvency unfortunate, Wilson said that this is not the first time that an airline has failed in the country and "it does I think underscore the industry structure that has prevailed has not been conducive for a healthy, vibrant, profitable industry". However, the Air India chief said that IndiGo's success and Tata Airlines coming together will "hopefully allow for a market that is more sustainable, ideally profitable that will allow airlines to invest in new products, expand the network and also lead India to assume its place on the world aviation stage."
Wilson, who is piloting Air India's massive expansion plans in terms of fleet as well as routes, said that Air India is investing USD 70 billion at the list price for 470 new aircraft and that is with the explicit purpose of providing more services, especially international connectivity. As Air India flies to more places non-stop from India and also builds a hub, then hopefully, the airline will catalyse further broader development of the country's aviation industry.
"That will be good for all the parties and not just the airline itself," he noted. Tata Group took over Air India and Air India Express from the government in January last year. Currently, the group has four carriers under its fold -- Air India, Air India Express, AIX Connect (earlier known as AirAsia India) and Vistara, a joint venture with Singapore Airlines. The group is also in the process of merging Air India Express and AIX Connect, and Vistara with Air India.
India should've more non-stop international connectivity
While travel demand is on the rise, India has relatively less direct international air connectivity and overseas traffic is catered to mostly by foreign carriers with connecting flights. Against this backdrop, the government is working on developing an international aviation hub in the country while Air India and IndiGo are also expanding their international operations.
Asserting that India deserves to have international non-stop connectivity to more destinations, the Air India chief said: "Our view is that India deserves to have international non-stop connectivity to many more destinations in the world than presently is the case. “To do that, it will require investments in aircraft, systems, and people by Indian carriers. That investment comes with economic incentives and other incentives. So building the environment to make such investments attractive to the people and such investments successful, at least in my view, is in the national interest," Wilson said.
When asked about India being hesitant to allow more bilateral flying rights to foreign carriers, Wilson said that for whatever reason, India did not have a strong home carrier to announce non-stop services to the points that people wanted to fly to and from. "In the absence of that, people were served by airlines hubbing in different places around India. Now, there are two airlines in India with the capacity and ambition to expand non-stop services, it is only right that they are given time to demonstrate that the intent is matched by action," he emphasised. India is one of the fastest-growing aviation markets in the world.
(With Inputs from PTI)
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Emirates in Collaboration with deSter as a part of Its Closed-loop Initiative
Abhishek Nayar
05 Jun 2023
Emirates Airlines recently partnered with deSter, an established manufacturer of in-flight service products, to begin a new sustainable adventure. This collaboration intends to execute a closed-loop recycling project, reviving in-flight service items, and demonstrating Emirates' commitment to environmental care. Emirates is taking an important step towards reducing waste and adopting a circular economy by recycling millions of onboard products.
Overview of deSter and its Contribution to the Initiative
deSter, a forward-thinking firm specializing in the design and manufacture of high-quality aviation equipment, has become an important partner in Emirates closed-loop recycling project. With decades of aviation experience, deSter is well-positioned to assist Emirates' goal of sustainability. Their understanding of sustainable materials and production methods makes them an ideal partner for this project.
Importance of Recycling In-Flight Service Items
It is impossible to overstate the importance of recycling in-flight service products. Plastic cutlery, meal trays, and beverage cups, for example, contribute to the overall waste generated during air travel. Emirates hopes to decrease waste and divert materials from landfills by recycling these goods. This project is consistent with the airline's overarching commitment to environmental sustainability.
The Closed-Loop Recycling Initiative
Emirates, eager to promote its environmental credentials, revealed plans to recycle millions of onboard goods, which would be recycled and converted into ready-to-use Emirates food service products. The cabin crew on every Emirates aircraft will collect defective food service items from Economy and Premium Economy Class dining to be unloaded in Dubai and then delivered to a local recycling factory.
The Advantages of the Closed-Loop Recycling Initiative
Emirates Airlines, its passengers, and the ecosystem as a whole will all benefit from the closed-loop recycling effort. For starters, this strategy considerably minimizes the airline's waste. Emirates guarantees that millions of in-flight service items do not wind up in landfills, where they would add to the world's rising waste burden.
Developing Green Credentials
Responsible consumption is a key environmental emphasis area for Emirates, which evaluates the full product lifetime from design to disposal and has incorporated an environmental obligation in the supplier code of conduct. The new programme represents a shift towards circular economy concepts, in which things are reduced and repurposed.
Passengers' Reactions to Implementation
The cooperation of the cabin crew and flawless logistics are critical to the effective execution of the closed-loop recycling project. The cabin crew is in charge of collecting broken food service items and ensuring that they are properly sorted and kept for recycling. Their commitment to sustainability is critical to the success of this endeavor.
Conclusion
The cooperation between Emirates Airlines and deSter for the closed-loop recycling effort demonstrates the airline's commitment to sustainability and environmental care. Emirates drastically decreases waste and promotes a more sustainable future for air travel by recycling millions of in-flight food items and repurposing them into new meal service goods. This project serves as a model for the industry, encouraging other airlines to prioritize environmental stewardship.
With Inputs from Emirates
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Lufthansa CEO Sees India As An Opportunity; Working With Air India for Future Partnerships
Radhika Bansal
05 Jun 2023
Bullish on the Indian market, Lufthansa Group CEO Carsten Spohr on Sunday, June 4 said the airline group is working closely with Air India as well as expanding its operations into the country. "We have strengthened our position in the Indian market. We think we can do more... flying more, a new partnership with Air India which is a different company than it was before to grow our market share," he said.
The group has a two-fold strategy for India. He said one pillar is to expand the operations to the country during a media briefing on the sidelines of the International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit.
"We have just announced reopening Frankfurt-Hyderabad (service) which we had to close a few years ago. We will also be for the first time serving Bangalore from Munich...We are using our aeroplane, operations to expand into India," he said.
He said that the second pillar is working closely with Air India, adding that now, with new leadership, with Tata and Singapore Airlines behind it, "we can do more with Air India". Lufthansa and Air India are part of the Star Alliance.
Lufthansa's Presence in India
While noting that India is the latest favourite country, Spohr said Lufthansa Group has been very successful in India in the last years. Lufthansa Group, which has been present in the Indian market for more than 90 years, currently has more than 50 weekly services to India, connecting Frankfurt, Zurich and Munich with various Indian cities, including Delhi and Mumbai.
To a query about bilateral flying rights, Spohr said Lufthansa Group has at this point sufficient traffic rights except for codeshare rights and connecting traffic. "I look at India as being an opportunity... We have done nice business... Indian upper middle-class wealth very much looks at Europe as a way to spend," he noted.
In April, the group said it would start flights on Munich-Bangalore and Frankfurt-Hyderabad routes this year as it looks to tap the post-Covid growth opportunities in the Indian aviation market. The flights on the Munich-Bangalore route will be operational three times a week and the first flight will be on November 3. On the Frankfurt-Hyderabad route, the flights will commence in the coming winter.
At that time, Lufthansa had said it intends to make the best of India's untapped growth opportunity - especially in the post-Covid era - by providing consumers with the most premium travel experiences during their international trips, be it for business or leisure.
Lufthansa Group comprises the segments of Network Airlines, Eurowings and Aviation Services. Worldwide, the group has 1,09,509 employees and generated revenues of 32,770 million euros in the financial year 2022.
Lufthansa’s Relations with India
Lufthansa has got a long-term vision to strengthen its footprint in the Indian market by catering to the growing population of young working professionals through this expansion. “The brand intends to make the best of India’s s untapped growth opportunity by providing consumers with the most premium travel experiences during their international trips, be it for business or leisure,” a press release said.
The airline had planned to start the service in 2020 before the outbreak of the COVID-19 pandemic hit the world. Lufthansa operates about 80 flights a week between India and Germany. Lufthansa has ordered more than 200 aircraft to be the most modern fleet operating in Europe in the coming years.
German carrier Lufthansa pitched for the liberalisation of bilateral air traffic rights. Lufthansa's comment comes in the wake of Indian authorities blocking any extension of bilateral rights to foreign airlines to promote Indian carriers. "The right assumption is that it has some kind of protectionism. In the long run, I think airlines would be better off if they do partnerships and if they understand that not one airline can generate a global network. It is simply impossible, "
Indian carriers will be better off if the restriction on bilateral rights is eased in the long term and if passengers have more choices for air travel, Harry Hohmeister, head of global markets & network, Lufthansa Group Airlines, said on Thursday, April 27. For an airline to operate a scheduled flight between two countries, there must be a “bilateral air services agreement” in place, which is negotiated and signed by both countries. This agreement outlines the “bilateral rights”, which determine the number of flights or seats that the airline is allowed to operate per week between the two countries.
Currently, Lufthansa operates 54 flights a week which will be increased to 56 by June end and after adding more services, flights are expected to increase to over 60 per week. Lufthansa Group has had a presence in the Indian market for more than 90 years.
About Lufthansa
Deutsche Lufthansa AG, commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second-largest airline in Europe in terms of passengers carried after ultra-low-cost carrier Ryanair. Lufthansa is one of the five founding members of Star Alliance, the world's largest airline alliance, formed in 1997. Besides its own services, and owning subsidiary passenger airlines Austrian Airlines, Swiss International Air Lines, Brussels Airlines, and Eurowings (referred to in English by Lufthansa as its Passenger Airline Group), Deutsche Lufthansa AG owns several aviation-related companies, such as Lufthansa Technik and LSG Sky Chefs, as part of the Lufthansa Group. In total, the group has over 700 aircraft, making it one of the largest airline fleets in the world.
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China Southern Eyeing $2.46 Billion Fund to Acquire 50 A320neo’s
Abhishek Nayar
05 Jun 2023
Airlines are constantly searching for possibilities for growth and diversification in the aviation industry's evolving landscape. With its strategic base in Guangzhou, China Southern Airlines has emerged as a prominent participant in the Chinese market. The airline's recent move to raise $2.46 billion through a private placement of shares demonstrates its commitment to improving its operational capabilities and strengthening its position in a highly competitive industry.
China Southern' History
China Southern Airlines, founded in 1988, is one of China's premier carriers and one of the world's largest airlines. The airline has a vast local and international network, connecting passengers to over 200 destinations globally from its primary hub at Guangzhou Baiyun International Airport. China Southern Airlines has earned a reputation for its dedication to safety, excellent service, and customer happiness throughout the years.
Private Placement of Shares
China Southern Airlines opted for a private placement of shares to fund its expansion plans. This strategic decision enables the airline to obtain capital by offering shares to an exclusive group of investors, including institutional investors, private equity firms, and high-net-worth individuals. China Southern Airlines can raise the funds it needs through a private placement rather than a public offering, which may include more complex procedures and regulatory restrictions.
The Fundraising Objective
China Southern Airlines, a major airline based in Guangzhou, has announced an ambitious ambition to fund $2.46 billion through a private placement of shares. This strategic decision is intended to facilitate fleet expansion, especially the addition of 50 Airbus A320neo aircraft. The airline publicly revealed its aim to obtain these funds and strengthen its position in the aviation business in a stock exchange filing.
Fleet Details
China Southern, the largest carrier in China in terms of fleet size, has an extensive lineup of aircraft. According to Planespotters.net statistics, the Chinese airline now has 656 aircraft in its fleet, with an average age of 9.2 years.
Planned Expansion: Adding Airbus A320neo Aircraft
China Southern Airlines has specified how the funds received through the private placement will be used. The airline plans to acquire 50 Airbus A320neo aircraft, which are popular among airlines worldwide owing to their technological excellence, fuel efficiency, and environmental benefits. With the addition of these modern jets to the fleet, China Southern Airlines will be able to provide greater levels of service, enhance passenger comfort, and reduce its operating expenses.
Advantages of the Airbus A320neo
The Airbus A320neo is a next-generation aircraft recognized for its minimal carbon footprint as well as excellent fuel efficiency. The A320neo consumes a great deal less fuel than prior aircraft types due to its latest engines and aerodynamic improvements. This fuel economy not only reduces airline operations expenses but also supports the industry's environmental initiatives by lowering greenhouse gas emissions. The addition of A320neo aircraft to China Southern Airlines' fleet accords with the airline's commitment to environmental stewardship and underlines its commitment to embracing cutting-edge technologies.
China Southern Airlines' Growth Strategy
China Southern Airlines' intention to raise capital through a private placement is consistent with the company's overall expansion plan. The airline intends to capitalize on the growing domestic and international travel markets, as well as the Asia-Pacific region's economic potential, in order to increase its competitive position. China Southern Airlines aspires to attract more customers, extend its route network, and improve overall customer happiness by investing in the latest aircraft and consistently upgrading its services.
The Aviation Industry's Competitive Environment
Domestically and internationally, the aviation sector is marked by intense competition. China Southern Airlines competes with other major Chinese carriers as well as international airlines in a highly competitive industry. China Southern Airlines recognizes the necessity of investing in its fleet, providing great services, and consistently adjusting to the changing demands of customers in order to preserve its market share and remain ahead of the competition. The private placement of shares and subsequent fleet expansion are significant initiatives to strengthen its competitive position.
Financial Prospects and Potential Risks
While China Southern Airlines' private placement of shares and fleet development provide exciting prospects, the financial outlook and associated dangers must be considered. The financial performance of the airline, including revenue creation, profitability, and good cost management, will be critical in achieving the intended results. Furthermore, issues such as rising fuel costs, regulatory changes, and geopolitical uncertainty might endanger the aviation sector as a whole. To achieve long-term success, China Southern Airlines will need to negotiate these hurdles intelligently and stay agile.
Conclusion
China Southern Airlines' plan to raise $2.46 billion through a private placement of shares is a big step forward in the company's expansion. The airline plans to add 50 Airbus A320neo aircraft to its fleet in order to improve operating capabilities, attract more customers, and strengthen its position in the competitive aviation business. China Southern Airlines is well-positioned for long-term development and success in the developing aviation industry because it prioritizes investments in innovative technology, fuel efficiency, and customer happiness.
With Inputs form Ch-aviation, PlaneSpotters.net
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