Air India CEO Sounds Alarm: No Aircraft Left to Lease Globally

Amid a global aircraft shortage, Air India has officially leased every commercially suitable jet available for immediate use. 

Aircraft Shortage Hits Hard: Nothing Left to Lease, Reveals Air India CEO

Chief Executive Officer Campbell Wilson stated that the airline has exhausted the global secondary aircraft leasing market due to persistent delays in new plane deliveries and ongoing supply chain disruptions. This effort was necessary to meet rising demand while modernisation plans remain in progress.

Fleet Expansion Plan Remains on Track

Air India’s goal of expanding its fleet to around 400 aircraft by 2027 is still largely on schedule. The group has already grown from fewer than 100 aircraft at the time of privatisation to over 300 as of now. However, the pace of future additions will be determined by the delivery timelines of the 570 aircraft ordered from Airbus and Boeing since 2023.

Developing India as an Aviation Hub

Wilson emphasised the importance of building India as a global aviation hub. With passengers currently connecting through hubs in other countries, most of the economic benefit flows abroad. Air India aims to change this by enhancing connectivity and infrastructure within India, thereby generating employment, business opportunities and value across sectors.

Bilateral Agreements and Market Access

The Air India CEO maintained that international flying rights should be expanded only when there is strong point to point demand. Agreements with countries in Europe, North America and Australasia are seen as balanced, while others are being evaluated for economic benefit to India. The principle of equal opportunity in air traffic rights remains central to the airline’s position.

Modernisation of Aircraft Fleet Underway

Modernisation of the narrow body aircraft is nearly complete, with 68% of the fleet already upgraded. The full upgrade is expected by year end, barring a few aircraft whose service life has been extended. Wide body aircraft modernisation has begun with B777s and A350s already upgraded. The process for B787s will start in July and continue until 2027, affected by the slow supply and certification of premium seating.

Supply Constraints to Persist for Several Years

Though improvements in the aircraft production supply chain are ongoing, Wilson expects the constraints to continue for three to four more years. Component manufacturers such as Spirit Aerosystems are seeing progress, but backlogs and certification delays remain a challenge across the industry. The Air India CEO expressed cautious optimism about future deliveries while stressing the need for long-term planning.

Impact of Pakistan Airspace Closure

The closure of Pakistan’s airspace has affected flight operations to destinations in Europe and North America. Non-stop flights to Chicago, Toronto, and Washington, DC have been suspended, while some flights to San Francisco now include a refuelling stop. These adjustments have led to operational complications and financial impact, although most services continue with slightly extended flight times.

Effect of Airport Closures

Around 800 Air India flights were cancelled due to temporary airport closures at 13 locations amid India-Pakistan geopolitical issues. This affected approximately 75,000 passengers who had to be refunded or rescheduled. While most airports have reopened, the airline has yet to restore full capacity due to weakened travel sentiment in certain regions.

New Charges on Premium Class Passengers

The recent approval by the Airports Economic Regulatory Authority allowing higher user development fees for premium class passengers in Delhi and Mumbai has been questioned by the Air India CEO. Wilson noted that airport infrastructure is largely the same for all passengers, and the additional charge could negatively affect both travellers and airline margins over time.

Plans for Navi Mumbai Airport Operations

Air India is in discussions with the Navi Mumbai airport operator to determine which routes to operate from the new location. Since the airline follows a hub model at the current Mumbai airport, any shift must be carefully considered to maintain operational efficiency and connectivity.

Read More: India Climbs to 3rd-Largest Aviation Market Globally!.

Leasing as a Temporary Fix Amid Aircraft Delivery Delays

To maintain capacity in the face of production delays, Air India has leased 11 B777s, 25 A320s, and 50 B737 whitetail aircraft. The airline also acquired six whitetail A350s. With all immediately available aircraft worldwide already leased, further expansion through leasing is currently not possible. The entire industry is facing capacity constraints due to delayed aircraft production.

Conclusion

Air India has leased every suitable aircraft available globally to tackle delivery delays and rising demand. Despite ongoing challenges, the airline stays focused on fleet modernisation, operational growth, and strengthening India’s position as a global aviation hub.

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