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\nIt\u2019s exactly one year since Air India underwent a image makeover, unveiling a new logo, a striking red, aubergine and gold themed-livery and a new identity projecting itself as as a bold, confident and a vibrant brand with ambitions to compete with the world\u2019s best.<\/p>\n
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\nAlongside the image makeover, the airline taken over by the Tatas, announced a phased roll out of a new web site, upgraded loyalty programme, lounges and refurbishment of its old aircraft.<\/p>\n
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\nAnd yet, a year on, the Air India brand appears to be struggling going by social media posts that are filled with complaints about broken tray tables, non-reclining seats, faulty in-flight entertainment system and shabby aircraft.\u00a0In recent weeks it has received flak for its customer handling and downgrading of passengers from premium cabins to economy without prior intimation or quick refunds.<\/p>\n
On the operational front too, the airline\u2019s performance is below par in comparison to its peers. Air India stood fifth or sixth among seven airlines whose on-time performance (OTP) is measured at four metros between January-June. Also, as per civil aviation ministry\u2019s response to Rajya Sabha last month, Air India cancelled 125 flights due to technical reasons between January-July. These were nearly half of the overall 269 technical led-flights cancellations reported by Indian carriers in the period<\/p>\n
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\nWhat ails Air India? Has it over promised and under delivered or are there deeper legacy issues and supply chain constraints?<\/p>\n
\nSetting too high expectations
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\u201cWhen the Air India acquisition occurred with much enthusiasm, customers anticipated a swift transformation into a world class airline. However, Tata group, aware of the time and efforts required for such transition did not manage the expectations effectively, a responsibility that rests heavily on them,\u201d says N Chandramouli, CEO, TRA Research, a Mumbai-based brand intelligence and advisory firm.<\/p>\n
\nIt\u2019s not as though the Tatas who took over Air India in January 2022 have been idle. Over the past two years the airline has expanded its reach, inducted new aircraft, including six Airbus A350s, which it plans to operate to London and New York. Air India has revamped its loyalty programme in April offering more rewards and is investing in lounges in India and overseas.<\/p>\n
There have been investments and initiatives like setting up of flight training school and maintenance repair overhaul (MRO) unit.\u00a0It is also hiring engineers and technicians to carry out aircraft line maintenance work (routine maintenance) that until now it had outsourced to its former subsidiary (AIESL). The regulator has also given a nod for integration of Vistara and Air India\u2019s line maintenance activities.<\/p>\n
\nNavigating change very slowly
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While the airline is trying to pilot through challenges, the planned retrofit of its old Boeing aircraft is running behind schedule. In December 2022, Air India had announced a $400 million programme to fully refurbish its 40 legacy Boeing 777 and 787 aircraft with latest generation seats and new in-flight entertainment system. Refurbishment work was to start in mid-2024 but is held up.<\/p>\n
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\n\u201cThere are delays in product certification and that has been compounded by challenges at seat manufacturers\u2019 end\u00a0who are not able to keep pace with orders,\u201d said an Air India source.\u00a0\u00a0<\/p>\n
Air India\u2019s spokesperson said that retrofit of legacy aircraft is scheduled to commence shortly but did not share further details.<\/p>\n
\nOn the positive side the retrofit of narrow body Airbus A320 aircraft is progressing and already six aircraft with a three class configuration have entered service. This brings product commonality with Vistara which is being merged with Air India. New amenities have been introduced on London flights and will be rolled out on others in coming weeks.
\nAir India intends to deploy its latest product to destinations such as Frankfurt, London, New York and San Francisco. \u201cAir India\u2019s unique advantage is its long-haul network and the idea is to offer customers a consistent product,\u201d a source said.<\/p>\n
Air India will also be introducing Bluebox Aviation\u2019s wireless entertainment system allowing customers to browse content on their devices. These would be installed on the old Boeing planes with dysfunctional in-flight entertainment systems.<\/p>\n
\nWhat\u2019s worked
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Over the last year the airline has seen an uptick in premium economy and business class loads and yields. Ancillary revenue and cargo too have contributed to revenue growth in the past twelve months.\u00a0A new ticket distribution system (called the NDC) has been rolled out that will help push up sales.<\/p>\n
\u00a0\u201cWhile the revenue has increased compared to last year, the expenses too have risen. Cost restructuring needs to be done in terms of crew productivity, aircraft utilisation and so on. It will take time for Air India to match IndiGo\u2019s cost structure,\u201d said a person in the know.<\/p>\n
Executives\u00a0say there is a greater focus now on maintaining on time performance and better inter department coordination. Staff is also being trained for effective handling of flight disruptions. \u201cAir India is strengthening its fleet with one aircraft joining every six days. Air India will soon be having new and upgraded aircraft to adhere to schedule integrity and enhance its OTP,\u201d the spokesperson said.<\/p>\n
\u201cInstalling wireless IFE on legacy widebody planes seems like a stop-gap measure till the aircraft undergoes retrofit. Nevertheless, it\u2019s an important step as its product on legacy aircraft is outdated compared to its rivals. Air India also needs to work on addressing customer complaints in a coherent fashion especially regarding its old aircraft,\u201d said Ajay Awtaney, Editor, LiveFromALounge.com, an aviation and loyalty-focused website.<\/p>\n
\n\u201cThe new Air India executive team has made the right moves in first couple of years\u00a0but these changes take time to percolate across the entire fleet and network. As the new product on A350 starts flying to more destinations and the cabin crew is retrained, we should see more improvements. The re-invention of Air India is like making an elephant dance. It will take time and effort,\u201d said Shashank Nigam, founder & CEO of aviation strategy firm Simpliflying.<\/p>\n