Air India CEO Campbell Wilson has mentioned that if the airline can implement higher fares on specific routes, it signifies increased demand for Air India's services. He also pointed out that many of the airfares offered by the Tata Group-owned airline are lower than the operational costs. Wilson explained that reducing fares on such routes would indicate low passenger demand, which wouldn't be in the airline's best interest.
He further emphasized that airfares are influenced by supply and demand, reflecting the value passengers perceive in terms of their travel preferences. Air India offers a range of fares, some of which are below the operational cost, as is the case with many airlines.
Wilson highlighted Air India's significant aircraft purchase deal worth around $70 billion, signed with Airbus and Boeing, as a testament to the airline's commitment to expanding its services and market share. The order includes a wide range of aircraft models, making it one of the largest aircraft orders in civil aviation history.
During the interview, Wilson also discussed the airline's growth in market share since privatization, attributing it to mergers, acquisitions, and effective capacity deployment under the Tata Group's ownership. He outlined plans for improving the in-flight customer experience, with a budget of $400 million allocated for refurbishing wide-body aircraft starting in 2024. This refurbishment will encompass new seats, an upgraded in-flight entertainment system, lavatories, and other enhancements to align with global standards. Additionally, Air India has already upgraded its website, with ongoing work to transition its call center.
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