Air India has delayed completion of its legacy aircraft retrofit programme to 2029—two years later than planned—due to supply-chain bottlenecks, including delayed regulatory certification for seat manufacturers and post-pandemic staffing shortages. The final phase, covering 19 Boeing 777s, begins in H2 2027 and will take up to two years. All 787-8s will be retrofitted by March 2028; narrow-body retrofits concluded in 2025. The $400-million initiative is part of Tata Group’s 2022 revival strategy. No cost overruns have occurred, but leadership transition and external shocks—including geopolitical disruptions and a June 2025 crash—are straining operations and financial performance.
According to www.livemint.com, Air India has pushed back the completion of its legacy aircraft retrofit programme to 2029, a two-year delay from the original target, citing supply-chain bottlenecks as the primary cause.
Retrofit Timeline and Scope
The final phase of the retrofit initiative will begin in the second half of 2027 and cover 19 wide-body jets, specifically Boeing 777s. This phase is expected to take up to two years to complete. According to Rajesh Dogra, chief customer experience officer, Air India:
“There are some 777 Boeing aircraft which will be sent for retrofit in the second half of 2027 and these will be ready in the next 18 to 24 months… so by 2029. These will be the last of the legacy aircraft that we have which require refurbishing.”
Prior to this, Air India completed retrofitting its 27 narrow-body jets in 2025, standardizing cabins across domestic and short-haul international routes. The airline is also retrofitting 26 legacy wide-body Boeing jets — including 787-8s — as part of a broader effort to align with global full-service standards. The first retrofitted 787-8 entered service last week; 7–8 more are expected to join the fleet by end-2026, with all 787-8s fully retrofitted by March 2028.
Scope of Upgrades and Programme Context
Retrofitting includes installing new seats, refreshed cabin interiors, and introducing a three-class configuration — business, premium economy, and economy. The initiative forms part of Air India’s $400-million fleet modernization programme, launched under the Tata Group’s five-year revival strategy announced in 2022 after reacquiring the airline from the Indian government.
Supply constraints stem from delayed regulatory certification for seat manufacturers and post-pandemic manpower shortages.
“There have, however, been no cost over-runs,”
said Dogra.
Broader Operational and Leadership Challenges
The retrofit delay occurs amid multiple external shocks: closure of Pakistani airspace; a fatal crash in June 2025 triggering precautionary fleet checks; Middle East conflict driving up jet fuel prices, extending flight paths to Europe and the US, and reducing operations to Dubai. These pressures are expected to widen losses. Air India reported revenue of ₹78,636 crore and a loss of ₹10,859 crore in FY25. Its FY26 results remain unannounced.
Leadership instability compounds execution risk: CEO Campbell Wilson resigned at the end of March 2026, and no successor has been named. Industry analyst Mark D Martin of Martin Consulting remarked:
“Turnaround of Air India has still not happened. It’s been four years since the modernisation and fleet upgrade plans were announced. They have not materialised on expected lines. And there needs to be some accountability.”
Source: www.livemint.com
Compiled from international media by the SCI.AI editorial team.
