Target 2029: Air India’s fleet upgrade hits two-year delay

Abhishek Law
2 min read19 Apr 2026, 06:27 PM IST
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The first retrofitted 787-8 aircraft was inducted into the fleet last week, marking the start of visible upgrades under the programme. Photo: Reuters
Summary
The final phase will start in the second half 2027 and is expected to take up to two years to complete, a senior executive said on Sunday, blaming the delay on supply-chain bottlenecks.

Air India has said it will complete the retrofit of its legacy aircraft by 2029, nearly two years later than originally planned, after supply-chain constraints slowed its fleet overhaul plans. The final phase of the programme will cover 19 wide-body jets starting in the second half 2027 and is expected to take up to two years to complete, a senior executive said on Sunday.

“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,” said Rajesh Dogra, chief customer experience officer, Air India.

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The Tata Group-owned carrier is already retrofitting 26 legacy wide-body Boeing jets, some as part of a broader effort to upgrade its product and align it with global full-service standards. Retrofitting includes installing new seats and refreshed cabin interiors, and introducing a three-class configuration—business, premium economy and economy. Wide-body aircraft have two aisles, compared with the single-aisle narrow-body jets typically used on domestic or short-haul international routes.

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The first retrofitted 787-8 aircraft was inducted into the fleet last week, marking the start of visible upgrades under the programme. “We expect another 7-8 more of the retrofitted 787-8s to be inducted by the end of 2026,” Dogra said. “All 787-8s will be retrofitted and be ready by March-end 2028,” Dogra added.

Retrofit work on the airline’s legacy narrow-body fleet of 27 jets was completed in 2025, allowing the airline to standardize cabins on its domestic and short-haul international network. Air India currently operates a fleet of about 185 aircraft across narrow-body and wide-body planes.

The retrofit initiative is part of a $400-million fleet modernization programme under the Tata Group’s five-year revival strategy that it announced in 2022 after reacquiring the airline from the Indian government. Seat manufactures have been strained due to delayed certification from regulators, which has been compounded by a manpower shortage since the pandemic. “There have, however, been no cost over-runs,” Dogra said.

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Alongside retrofitting, Air India’s revival plan included placing large aircraft orders and expanding international routes to rebuild its long-haul network and compete more effectively with global carriers.

Mark D Martin, chief executive of Gurgaon-based Martin Consulting, said, “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.”

CEO transition

Amid all this, Air India is navigating a leadership transition. Chief executive Campbell Wilson resigned at the end of March, the airline announced a week later, in April. It is yet to name a successor.

Operations have also been hit by a series of external shocks over the past year, including the closure of Pakistani airspace, a deadly crash in June 2025 that led to precautionary fleet checks, the conflict in the Middle East that has pushed up jet fuel prices, lengthened flight paths to Europe and the US, and reduced operations to Dubai. These factors are expected to weigh on costs and widen losses.

The privately held Air India, reported revenue of 78,636 crore and a loss of 10,859 crore in FY25. It is yet to announce its FY26 results.

About the Author

Abhishek Law has spent 18 years in journalism, which in news industry terms means he has survived several newsroom restructurings, countless “urgent” press releases, and more cups of tea than he can reasonably count. Based in New Delhi, he covers aviation for Mint, a sector where aircraft, oil prices, geopolitics and airline CEOs regularly conspire to make his life interesting.<br><br>Most of his time gets occupied by translating airline jargon like ASKs, yields, load factors and fleet strategies into language that doesn’t require a pilot’s licence. His motto is simple: if readers need a glossary, he hasn’t done his job properly.<br><br>On most days, the quadragenarian is tracking airline strategies, policy changes and the occasional mid-air disruption that suddenly become a stock market story. When planes are behaving themselves (which is not very often nowadays), he strays into other corporate beats like steel, trying to figure out what’s really happening.<br><br>He loves to talk, especially ask—that one more question which people are uncomfortable with, and saving contacts in his phone as a "Source who may or may not pick up calls”. <br><br>But, on a serious note, the goal remains simple: cut through jargon, find that additional detail, and turn complicated business stories into something one can actually enjoy reading.

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