Air India's US Demand Hit by Geopolitics, Fleet Upgrade on the Horizon
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Air India's CEO Campbell Wilson revealed that the airline's international passenger demand to the US has taken a hit due to ongoing geopolitical issues and airspace constraints. Speaking at a recent event, Wilson attributed the decline in demand to several factors, including the hiking of H1B visa fees, airspace closures, and additional flying time required due to refueling stops. However, Wilson expressed confidence in the long-term prospects of the market, stating that the airline expects to see a significant change in 2026. As part of its fleet upgrade, Air India will add 26 aircraft in 2026, including six widebody aircraft, with several retrofitted B787-8 aircraft also joining the fleet. The airline has been working to support the families affected by the June 12 AI 171 crash, with 95% of families receiving interim compensation and 70% receiving ex gratia payments. Wilson emphasized the airline's commitment to supporting those who have been impacted. Regarding passenger behavior towards flying in B787 aircraft, Wilson acknowledged that there may be some nervousness following the crash. However, he noted that the airline has taken steps to address safety concerns, including accelerating reliability programs and emphasizing staff training. While there was a drop in bookings in the first few months following the crash, Air India has since seen a recovery in volumes, with 15 million passengers carried since June. Wilson attributed this to the airline's improved punctuality, which is giving customers confidence in their travel plans.
