“Air India CEO: India’s Aviation Boom Could Foster New International Hub”

India’s aviation sector is expanding rapidly, with potential to accommodate at least one more international hub besides Mumbai and Delhi, asserted Campbell Wilson, CEO of Air India Ltd.

Wilson stated that India has the capacity for three hubs and numerous point-to-point services, highlighting the unique east to west flow in northern India and the potential for south India to facilitate routes between Asia, Africa, Europe, and Australia.

According to Bloomberg, India’s burgeoning consumer base and economic growth could position it as one of the largest travel markets globally.

In addition to leading carrier IndiGo and emerging airline Akasa, Indian airlines have ordered over 1,100 aircraft, with investments of around $12 billion slated for the construction of over 72 new airports by 2025.

Air India has been receiving one new aircraft every six days over the past six months and will continue to do so over the next year.

Wilson mentioned that Air India recently received 11 new Boeing 777s, three Airbus A350s, and approximately 15 Boeing 737 Maxs this month. The retrofitting of existing widebodies is expected to be completed by the end of 2025 or 2026.

At the time of privatization, Air India had 43 wide-body aircraft for a population of 1.3 billion, which Wilson compared to other carriers like Singapore and Dubai, highlighting the underserved nature of the Indian market.

As part of the Tata Group’s strategy to revamp Air India, low-cost carriers Air India Express and AIX Connect will be merged, and Air India and Vistara will form another entity.

Wilson announced that Singapore Airlines will hold a 25.1% stake in the enlarged entity resulting from the merger between Air India and Vistara, after approval from the Competition and Consumer Commission of Singapore.

The transformation program for Air India, which includes a rebranding campaign, has been ongoing for the past 18 months. The focus has shifted from addressing past issues to establishing systems, personnel, processes, and equipment under Tata Group’s ownership.

Wilson noted that nearly 5,000 people have been added in the last 18 months, reducing the average age of employees from 54 to 35. Additionally, the airline’s IT systems had to be reconstructed from scratch during the transition from government to Tata Group ownership.