Air India is implementing a comprehensive makeover of its older aircraft fleet as part of a broader strategy to strengthen revenue and return to profitability. According to reports from The Times of India, The Economic Times, and Storyboard18, the airline is investing around $400 million (₹3,622 crore) to upgrade inflight cabins across its wide-body fleet, including Boeing 787s and earlier 777 aircraft. The Tata Group-owned carrier is focusing on high-value passengers to improve earnings and move back towards profitability, with chief customer officer Rajesh Dogra confirming that eight Boeing 787-8 aircraft will operate this year with fully refurbished interiors. The aircraft being refurbished were originally delivered when the airline was under government ownership, with the first retrofitted aircraft recently showcased and expected to be deployed on European routes shortly.
The airline has presented the first of its retrofitted Boeing 787 aircraft, which is set to enter service on European routes shortly. As reported by The Times of India, The Economic Times, and Storyboard18, the upgraded business class features suite-style seating with sliding privacy doors, along with enclosed storage compartments, redesigned seat controls, and adjustable armrests that include built-in water-bottle storage. The aircraft was originally delivered to Air India in 2015, during its state ownership phase. Dogra stated that the cabin quality has been a major pain point in the transformation journey and the airline is rapidly modernizing the backbone of its long-haul fleet, raising the bar for customers flying between India and the world. The upgrades are aimed at addressing customer concerns around cabin quality, seating and onboard experience, with the focus on front-end cabins such as business and first class contributing significantly to overall revenues.
Beyond fleet upgrades, Air India is expanding its ground infrastructure with six wide-body aircraft set to be inducted this year and new premium lounges at key international gateways, including San Francisco and New York. According to The Times of India, The Economic Times, and Storyboard18, in February, the airline inaugurated its first such lounge in Delhi, its primary hub. Dogra indicated that these changes are expected to help Air India attract more high-value passengers, supporting improved ticket yields, with premium cabins remaining critical revenue drivers that often offset lower fares in economy. The airline is also expanding its premium ground services, with new lounges planned at key international destinations such as San Francisco and New York, as part of its broader modernization efforts.
The airline is already seeing benefits from operating planes with new interiors on routes like Dubai, New York, and London, as reported by The Times of India, The Economic Times, and Storyboard18. Dogra noted that customer satisfaction has shown marked improvement, with the net promoter score rising significantly following the introduction of new aircraft and refurbished cabins. The focus on premium traffic is expected to continue supporting improved ticket yields as more new aircraft join the fleet, with front-end cabins like business and first class being the top revenue generators for an airline, often helping subsidise the economy cabin to attract more passengers. The upgrades are expected to support the airline's push to attract premium travellers, with the airline already seeing improvements on routes where upgraded aircraft have been deployed.
