Air India, which is set to buy 470 aircraft for around USD 70 billion, has ‘huge’ potential, according to airline chief Campbell Wilson and efforts are on to make the group a significant international player in the aviation sector. Against the backdrop of incidents of indecent behavior of passengers on board and the airline’s decision to revise its policy on serving alcohol, Wilson said the crackdown on drunkenness is also a multi-faceted issue.
“We have straightened the (liquor policy) a bit to recognize the signs of intoxication… What has changed in a big way is reporting and taking action… Almost every day there is an incident And that’s usually a case.” A person drinks their own alcohol before boarding an aircraft or smuggles their duty free alcohol on board and consumes it.
“It is being reported more frequently and we are taking strong action when it happens,” Air India CEO and MD said during a virtual media interaction on Monday. He pointed out that the issue of drug addiction is something that has been noted internationally and is on the rise post-Covid. He said that this is something that IATA has said.
IATA (International Air Transport Association) is a global group of airlines and Air India is also a member. Last month, in less than a week, aviation regulator DGCA penalized Tata Group-owned Air India twice related to incidents of unruly passenger behaviour.
On 14 February, Air India announced an order for 470 aircraft, including 70 wide-body aircraft. Regarding funding for the purchase of 470 aircraft, Wilson said it would be a combination of several things, including cash flow and financing by shareholder equity.
“We will explore other opportunities such as sale of aircraft and taking back leases. Suffice it to say that there are multiple sources of funding and likely a combination of different sources,” he added. Of the 470 confirmed orders, 250 are from Airbus and 220 from Boeing. Of these, 70 are wide-body aircraft.
Wilson said all six wide-body A350s will join the fleet this year. When asked about the list price of the ordered aircraft, Wilson said that if the numbers published on manufacturers’ websites were to be taken, it would be around US$70 billion.
Noting that the opportunities for Air India as well as India are indeed quite phenomenal, he said the country has very attractive economic growth, significant population, attractive demographics and a geography that is conducive to international aviation connectivity.
India is all set to capture the change in supply chain infrastructure. Besides this, there is a large and prosperous diaspora which is very keen to get connectivity to the domestic market, he added.
He added, “We see that Air India has immense potential and we see that Air India is capable of providing great opportunities to professionals to realize their ambitions.” Responding to another question, the Air India chief said the Maharaja brand is something it would like to retain. “… (Maharaja) is something we want to be part of Air India’s future… It is well liked… It will be part of our future”.
Regarding exercising the option to buy another 370 aircraft, Wilson said, “We don’t have a timeline … We will evaluate the market.” Responding to another question, Wilson said that about 1,500 people had taken VRS in the last year’s offer and that was about 43 per cent of the people who were eligible to do so.