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Geopolitics hit US demand; major fleet upgrade in 2026: AI CEO Campbell Wilson
The airline operates non-stop flights to New York, San Francisco, Toronto and Vancouver but is yet to resume its non-stop flights to Washington DC.
Gurugram: Delayed aircraft deliveries coupled with geopolitical issues including the hiking of H1B visa fee and airspace closure have impacted Air India's international passenger demand to the US, Air India’s chief executive officer (CEO) and Managing Director (MD) Campbell Wilson said on Monday.
“The demand on US sectors has been hit..there's so many factors at play here. One is airspace constraints, additional flying time, refueling stock that's required in some places, and then also impact on payload that we can carry because of the additional flying time and fuel that it requires. At the same time, you've got visa issues whether it be student or H-1B. That causes a little bit of trepidation amongst people traveling to or from the US, and so we're responding to that as well”
“We think this is transitory. We're still very confident in the long-term prospects of the market,” he added.
The airline operates non-stop flights to New York, San Francisco, Toronto and Vancouver but is yet to resume its non-stop flights to Washington DC.
Wilson however, said that 2026 would be “the year customers notice the most significant change”.
“Air India will add 26 aircraft in CY 2026 including six widebody aircraft, a mix of Boeing B787-9 and Airbus A350-1000 aircraft. In addition to this, several of its retrofitted B787-8 aircraft will join the fleet in 2026.
“By the end of 2026, about two-thirds of the B787 fleet will feature the new interiors, with the retrofit of the full fleet set for completion by mid-2027. Most of these aircraft operate to Europe, Australasia and Southeast Asia,” he said.
Speaking about the June 12 AI 171 crash, Wilson, said, “We continue to do all we can to support those that were affected. 95% of families have received their interim compensation. Out of 180 families, about 70 of the families have also received the ex gratia payment from the AI 171 trust, with another 50 in the process of being dispersed and we continue to reach out to the families of those affected, both as Air India and as Tata Sons to offer the assistance and support that that might require.”
“As we've said previously, our commitment to those who have had a loss, whether they were on ground or in the air, will continue for as long as it takes,”
Replying to a query on passenger behavior towards flying in a B787 aircraft, Wilson said, “I think it's only natural that when something such as this happens that people are nervous. That is why we took the safety pause, and why we had tried everything we could during that safety pause with more aircraft on the ground to accelerate the reliability programs. We've also emphasized and up-weighted a lot of our staff training. Whether it be the operating crew or engineers, to reinforce even more the safety priority.”
The CEO admitted that the airline’s booking in the first few months had dropped. “Yes, in the first few months, there was a drop in bookings, but it has recovered.. We've carried 15 million-odd people since June so the volumes have come back. I think, as I say, the punctuality that we're delivering is giving people confidence. This is both domestic and international flights , with the caveat of the North America and airspace-affected markets, because it's very hard to ascertain what is a demand side and what is a supply side in that.”
Wilson said that demand for bookings in B787 aircraft, which had dipped, was also back.
