Air India CEO Campbell Wilson.
Air India CEO Campbell Wilson described the integration of four airlines into two as “probably unprecedented” in the aviation industry, with plans to finalize both transactions by year’s end.
India’s Tata Group intends to combine Air India and Vistara as part of efforts to streamline operations. Tata purchased Air India in early 2022 and jointly owns Vistara along with Singapore Airlines. Additionally, the group is merging LCC subsidiaries Air India Express and the former AirAsia India business.
“The challenge of merging four airlines into two, concurrently, is probably unprecedented in aviation,” Wilson told a media roundtable at the Farnborough Airshow. “There are the competition and legal clearances, then we have to merge all the operating practices, procedures and manuals, and train all the staff. It's a very long and convoluted process, but we’re hoping that by the end of this calendar year we’ll be able to complete both mergers.”
Wilson noted that significant challenges include IT integration and aligning a diverse workforce of 30,000 staff. “There are many organizational structures to harmonize, but we are making substantial progress, and employees are looking forward to the new era,” he added.
Speaking to ATW, Wilson described the “enormous” opportunity for aviation growth in India, noting that at the time of Air India’s privatization in 2022, the country had just 43 widebodies for its 1.4 billion population. In contrast, Singapore had 150 widebodies serving its 5 million residents, he said.
“The opportunity for growth out of India, even if you just focus on point-to-point, is enormous. When you consider the geography, which is exactly the same from a connectivity perspective as the Gulf, it compounds even further. So, our limiting factor is access to aircraft.”
Air India placed a huge order for 470 aircraft with Airbus and Boeing in 2023. The firm order included 70 widebodies, comprising 34 Airbus A350-1000s and six A350-900s, and 20 Boeing 787s and 10 777Xs.
“Four hundred and seventy aircraft is a pretty serious statement of intent,” Wilson said. “We have leased in 36 aircraft with new interiors and new products. A third of our widebody fleet also has new interiors and new products, and 80% of our narrowbody fleet will be upgraded by April of next year.”
Wilson added that Air India has taken a “clean slate look” at future alliance relationships since being acquired by Tata. “I think we've landed on our future—and it is to remain with Star Alliance,” he explained.
“We’re developing and strengthening relationships with key alliance partners, particularly within Star but also outside. It is a big turnaround for them as well, because the Air India of old was not the best of partners.
“As they've gotten to learn about the new Air India and our ambition and capabilities, they've become more and more excited about the opportunity of closer partnership.”
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