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Tata Group’s Air India to Bring Aircraft Maintenance In-House Backed by Singapore Airlines

Written by: Team Angel OneUpdated on: 6 Aug 2025, 9:29 pm IST
Air India shifts aircraft maintenance in-house, aided by Singapore Airlines, moving away from AIESL to boost safety and operational control.
Tata Group’s Air India to Bring Aircraft Maintenance In-House Backed by Singapore Airlines
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Air India is transitioning its aircraft maintenance operations in-house with the support of shareholder Singapore Airlines, marking a major step in its overhaul strategy, as per news reports. This shift moves away from state-run AI Engineering Services Ltd (AIESL), particularly after safety audits and a fatal crash raised concerns over outsourced maintenance standards.

Air India Begins Phased Transition of Maintenance Operations

As per the report, the airline has started assuming responsibilities for key maintenance activities, including pre-flight inspections, minor repairs and technical troubleshooting. This move is part of an ongoing transformation under the Tata Group, which acquired Air India in 2022. 

The June crash of flight AI 171 in Ahmedabad, which left only 1 survivor out of 242 passengers, intensified the urgency to strengthen safety controls by internalising critical services.

Singapore Airlines Plays Strategic Role in In-House Setup

Singapore Airlines, holding a 25.1% stake in Air India, is actively assisting in developing the airline’s internal maintenance capabilities. The collaboration rewinds history, as Air India previously supported SIA’s development during the 1970s. 

A shared drive for safety, efficiency and future-readiness now binds the two carriers in mutual support once more.

Read More: Deepinder Goyal-Backed LAT Aerospace Sets Up Bengaluru R&D Hub to Build Gas Turbine Engines!

Audit Findings Spur Maintenance Overhaul

A Directorate General of Civil Aviation audit flagged 93 safety issues within Air India Group, the highest across Indian carriers. By comparison, IndiGo reported 23 findings, while SpiceJet recorded 14.

Issues raised about AIESL maintenance included recurring in-flight problems like clogged lavatories and delayed repairs. These factors prompted Air India’s decision to independently ensure reliability in routine upkeep.

Preparing for Large-Scale Fleet Growth

With a combined fleet set to reach 570 aircraft, including numerous widebody jets, Air India plans large investments in domestic MRO infrastructure. Its spokesperson highlighted the current inadequacy of India’s maintenance ecosystem to match such scale, underlining the necessity for self-sufficiency in future operations.

Conclusion

Air India’s in-house maintenance shift, supported by Singapore Airlines, aims to strengthen safety, reduce reliance on public-sector services and prepare the carrier for fleet expansion. This strategic shift is timely, following audit criticisms and operational disruptions earlier in the year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 6, 2025, 3:59 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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