New Delhi

With “structural tailwinds” expected in FY27, Air India plans to expand its international footprint, optimise its network and tap premiumisation-led growth, a senior airline executive said on Friday.

Describing FY27 as a “conversion year”, Air India Chief Commercial Officer Nipun Aggarwal said the airline would have a credible product foundation to compete for premium market share across key global routes.

The Tata Group-owned carrier, which returned to private ownership in 2022 under the Tata Group, is in the midst of an ambitious turnaround plan that includes fleet upgrades, induction of new aircraft and service enhancements.

Focus on reliability, not just product

Aggarwal stressed that product upgrades alone would not define FY27. Schedule reliability, on-time performance and disruption management would be key differentiators.

“FY27 is not about recovery; it is about acceleration,” he said in a message to employees, adding that the airline aims to return to the growth trajectory set since privatisation.

He acknowledged that FY26 saw a surge in disruptions, misconnections and flight changes, denting customer confidence — particularly among corporate clients who closely track operational reliability.

Seamless connectivity remains critical, he noted, but extended flight times due to airspace constraints have increased misconnection risks. He called for proactive connection management to anticipate and mitigate disruptions before they affect passengers.

Fleet upgrades and global partnerships

Aggarwal said FY27 offers structural advantages, including a fully retrofitted narrow-body fleet, accelerating wide-body upgrades, stronger global partnerships and a sharpened commercial strategy.

By the end of 2026, 20 more wide-body aircraft will feature the airline’s new product, including five Boeing 787-9s, two Airbus A350-1000s and over a dozen retrofitted legacy Boeing 787 aircraft.

As the wide-body fleet grows, Air India plans to expand services in existing markets such as Germany and Japan, while launching new international destinations from its Delhi and Mumbai hubs over the next year.

Partnerships with Singapore Airlines and the Lufthansa Group are expected to significantly enhance connectivity across Southeast Asia and continental Europe through deeper cooperation in scheduling, sales, distribution and loyalty integration.

Network optimisation and premium growth

Network optimisation will remain a priority, with efforts to strengthen hubs and improve domestic-to-international and international-to-international connections.

As part of its FY27 commercial strategy, the airline will also focus on customer-centric initiatives and premiumisation-led growth to improve yields.

Aggarwal, who also serves as Chairman of Air India Express, said that following the completion of the low-cost carrier’s network restructuring, attention will shift to optimal fleet deployment and improved aircraft utilisation.

With new aircraft inductions, Air India Express will expand across Asia and the Middle East while strengthening domestic operations from hubs in Bengaluru, Delhi and Navi Mumbai.

Challenging FY26

Calling FY26 one of the most challenging operating years for the airline, Aggarwal cited airspace closures over Pakistan, Iran and Iraq, geopolitical volatility and the tragic crash of flight AI171 as major headwinds.

On June 12, 2025, an Air India Boeing 787-8 operating from Ahmedabad to London Gatwick crashed shortly after takeoff, killing 260 people, including 241 onboard.

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“Yet, we adapted. We protected our network, stabilised operations and continued advancing our transformation agenda,” Aggarwal said, expressing confidence that FY27 would mark a decisive shift from stabilisation to sustained growth.