Air India enters final phase of Vihaan.AI transformation

Tata Group-promoted Air India has entered the final phase of its Vihaan.AI transformation programme after achieving the initiative’s core objectives, with fleet expansion, cabin retrofits, as well as profitability emerging as the remaining focus areas, the airline told businessline.

Responding to queries from businessline, an Air India spokesperson said Vihaan.AI was launched as a comprehensive transformation programme to strengthen the airline’s foundations and position it for long-term growth.

The spokesperson said that the key objectives of the programme have been substantially achieved, including the integration of the airline group, significant fleet and network expansion, enhanced customer propositions, major digital investments, and the development of new organisational capabilities.

While describing transformation as an ongoing journey, the spokesperson said the airline is now focused on scaling these gains and building on the strong foundation established through Vihaan.AI.

Speaking to businessline, industry sources dismissed suggestions that the transformation programme had either concluded or undergone any change in direction.

Reinforcing the airline’s position on the programme’s progress, sources told businessline that most of Vihaan.AI’s transformation workstreams have already transitioned into business-as-usual operations.

Both confirmations come at a time when the airline has undertaken temporary rationalisation of select domestic and international services owing to continued airspace restrictions over certain regions, aircraft delivery delays and elevated operating costs.

Last week, in an internal communication to employees, Air India Chief Executive Officer and Managing Director Campbell Wilson said easing tensions in the Middle East and the moderation in international Aviation Turbine Fuel (ATF) prices could allow the airline to gradually restore some of the schedule reductions implemented in recent months, should the current operating environment remain stable.

According to sources, only two major elements of the programme — fleet expansion and product upgradation through the induction of new aircraft and the retrofitting of the existing fleet — have progressed more slowly than originally envisaged owing to global post-Covid supply-chain disruptions and delays, including production delays at Boeing, Airbus and seat suppliers.

“These delays have affected other airlines too, but are now full steam ahead,” sources said.

Additionally, sources said Air India’s third line-fit Boeing 787-9 aircraft has arrived in India, while another legacy Boeing 787-8 has been ferried to Victorville in the United States to commence its cabin retrofit.

Besides, the airline is entering the next phase of its network strategy by concentrating operations around three major domestic hubs while expanding its presence in long and ultra-long-haul international markets.

As part of this strategy, Air India Express is expected to assume a larger role in domestic and short-haul international operations under the supervision of the Air India Management Committee.

Sources said Air India will increasingly focus on point-to-point international traffic while simultaneously building a larger transit passenger base through its domestic hub-and-spoke network.

The objective, sources said, is to offer passengers faster and more efficient international travel options while reducing dependence on overseas transit hubs.

In terms of profitability, sources admitted that, due to unprecedented ‘black swan’ events, the target has been pushed back.

“Not just Air India but globally many airlines are suffering from such events. In our case, the closure of Pakistan airspace, along with the tragic crash of last year, caused our overall financial position to take a substantial hit. However, the strong foundation laid since privatisation has shown resilience and is expected to endure any further impact,” sources said.

Air India, which was privati...