Air India Targets 35 Million Indian Expats with Competitive Airfares

Air India is setting its sights on the vast 35-million-strong Indian diaspora by offering competitive fares, a strategic move to balance customer expectations while it works through delayed fleet upgrades. As the airline undergoes a massive transformation under Tata Group’s ownership, its CEO, Campbell Wilson, has emphasized the importance of pricing strategies to retain and expand its loyal passenger base.

A Strategy to Overcome Fleet Inconsistencies

In a recent interview with Bloomberg, Wilson acknowledged that travelers choose airlines based on multiple factors, including ticket prices, cultural affinity, onboard food, travel duration, and overall perception of service quality. Aware that its fleet is currently inconsistent due to pending upgrades, Air India is taking proactive steps by adjusting fares accordingly to maintain competitiveness. While the exact discount rates remain undisclosed, the airline’s intent is clear—to offer value-driven choices to its passengers.

Expanding Routes to Serve Global Travelers

Air India has been aggressively expanding its international presence, particularly in markets with significant Indian expatriate populations. The airline currently operates 51 weekly flights to the United States and 80 to Europe, alongside a strong presence in the Middle East and Southeast Asia. By optimizing transfer times at key transit hubs, Air India is ensuring smoother and faster connections, enhancing the overall passenger experience.

Fleet Expansion and Future Plans

As part of its ambitious expansion, Air India’s fleet now comprises 198 aircraft, including 70 inherited from Vistara following the merger with Singapore Airlines. Additionally, Air India Express operates a mixed fleet of 103 aircraft, with Boeing and Airbus jets forming the core of its operations. The airline has an order book for 570 new aircraft—350 from Airbus and 220 from Boeing—to support its long-term growth strategy.

The airline expects to receive its first Boeing 787 featuring the new livery in the second half of 2025, signaling the next phase of its modernization efforts. Meanwhile, Air India Express is set to acquire nine Boeing 737 MAX aircraft, reinforcing the group’s commitment to enhancing regional connectivity and service quality.

From Acquisition to Market Leadership

Since being acquired by Tata Group in January 2022, Air India has undergone a rapid transformation. At the time of acquisition, the airline operated 323 weekly short-haul flights, primarily catering to regions such as the Middle East, Southeast Asia, and SAARC nations. By early 2025, this number had surged to 750 weekly flights, reflecting a strategic pivot towards a hub-based model with higher flight frequencies and expanded Southeast Asia routes.

Competing with Market Leaders

Despite its aggressive expansion, Air India remains in a financial recovery phase as it competes with budget airline giant IndiGo, which currently dominates India’s aviation market. While Wilson refrained from commenting on a potential break-even timeline, it is evident that the airline’s focus is on long-term growth rather than short-term profitability.

Aiming for Global Supremacy

In a bid to elevate its global standing, Air India is reportedly in talks to acquire additional wide-body aircraft from Airbus and Boeing. These acquisitions would further strengthen its long-haul capabilities and align the airline with global standards, reinforcing its commitment to delivering a world-class travel experience.

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