Aircraft Shortage To Persist For Airlines For 4-5 More Years, Says Air India CEO. Here's Why
Aircraft supply to airlines will remain limited for the next four to five years due to ongoing supply chain challenges faced by manufacturers Airbus and Boeing, according to Air India's CEO and Managing Director, Campbell Wilson. Currently, Air India operates a fleet of around 210 aircraft, with its low-cost subsidiary, Air India Express, managing about 90 planes. In November, Wilson had mentioned that the airline group’s fleet could grow to approximately 400 planes in the next three years, up from the current 300. During his address at the Skift India Forum 2025 on Tuesday, Wilson elaborated on the supply chain challenges that are causing delays in aircraft deliveries to airlines. "We have placed an order for 570 planes (in the last two years). It would be fair to say that there are pinch points everywhere. In narrow-body aircraft, the pinch point is engines... There is a pinch point with respect to the supply of seats in first and business class for wide-body planes, and that has impacted our retrofit programme too," he said. "Both Boeing and Airbus have certain challenges in the production line of their aircraft because they cannot get components or parts of the fuselage from their suppliers. So, the reality is that this is going to remain a supply-constrained market, not just for India or Air India. I am talking about global aviation. It is going to remain a supply-constrained market for another four to five years," the CEO added. Air India's aircraft retrofit program has been delayed. The airline began upgrading its narrow-body planes in September of last year, with completion now expected by mid-2024. Afterwards, it will begin retrofitting its wide-body aircraft, a process set to be finished by 2027. Wilson remarked that Air India, like every other airline globally, is a "victim" of the current circumstances. "If you are capacity-constrained, you have to be a little bit ruthless with respect to where you deploy your aircraft to maximise returns. It means you cannot expand to places that you would otherwise like to expand. There is not a lot that you can do beyond that," he explained. Also Read : Audi To Slash Up To 7,500 Jobs By 2029, See Which Departments Will Bear The Layoff Brunt Aircraft On Lease The CEO also clarified that leasing aircraft is not a simple solution. "We can try to lease aircraft from the external market, but every other airline is trying to do it. Getting one or two aircraft with a different configuration from the rest of the fleet adds to the complexity rather than advancing you. It is a very significant challenge for the industry as a whole," he said. Wilson also noted that repainting and refurbishing Vistara's aircraft is expected to take about 1.5 years. Vistara, a full-service carrier, was merged with Air India last year. He emphasised that retrofitting aircraft remains Air India’s top priority. The refurbishment of its legacy Boeing 777 planes, initially scheduled for last year, was delayed due to issues with seat supply. To resolve this, the airline has now launched a major cabin refresh program. Wilson added that all legacy wide-body aircraft will be upgraded by early to mid-2027, although the process is progressing "slower" than anticipated due to supply chain challenges and limited aircraft availability for refurbishment at any given time.
Aircraft supply to airlines will remain limited for the next four to five years due to ongoing supply chain challenges faced by manufacturers Airbus and Boeing, according to Air India's CEO and Managing Director, Campbell Wilson. Currently, Air India operates a fleet of around 210 aircraft, with its low-cost subsidiary, Air India Express, managing about 90 planes. In November, Wilson had mentioned that the airline group’s fleet could grow to approximately 400 planes in the next three years, up from the current 300.
During his address at the Skift India Forum 2025 on Tuesday, Wilson elaborated on the supply chain challenges that are causing delays in aircraft deliveries to airlines.
"We have placed an order for 570 planes (in the last two years). It would be fair to say that there are pinch points everywhere. In narrow-body aircraft, the pinch point is engines... There is a pinch point with respect to the supply of seats in first and business class for wide-body planes, and that has impacted our retrofit programme too," he said.
"Both Boeing and Airbus have certain challenges in the production line of their aircraft because they cannot get components or parts of the fuselage from their suppliers. So, the reality is that this is going to remain a supply-constrained market, not just for India or Air India. I am talking about global aviation. It is going to remain a supply-constrained market for another four to five years," the CEO added.
Air India's aircraft retrofit program has been delayed. The airline began upgrading its narrow-body planes in September of last year, with completion now expected by mid-2024. Afterwards, it will begin retrofitting its wide-body aircraft, a process set to be finished by 2027.
Wilson remarked that Air India, like every other airline globally, is a "victim" of the current circumstances. "If you are capacity-constrained, you have to be a little bit ruthless with respect to where you deploy your aircraft to maximise returns. It means you cannot expand to places that you would otherwise like to expand. There is not a lot that you can do beyond that," he explained.
Also Read : Audi To Slash Up To 7,500 Jobs By 2029, See Which Departments Will Bear The Layoff Brunt
Aircraft On Lease
The CEO also clarified that leasing aircraft is not a simple solution. "We can try to lease aircraft from the external market, but every other airline is trying to do it. Getting one or two aircraft with a different configuration from the rest of the fleet adds to the complexity rather than advancing you. It is a very significant challenge for the industry as a whole," he said.
Wilson also noted that repainting and refurbishing Vistara's aircraft is expected to take about 1.5 years. Vistara, a full-service carrier, was merged with Air India last year.
He emphasised that retrofitting aircraft remains Air India’s top priority. The refurbishment of its legacy Boeing 777 planes, initially scheduled for last year, was delayed due to issues with seat supply. To resolve this, the airline has now launched a major cabin refresh program. Wilson added that all legacy wide-body aircraft will be upgraded by early to mid-2027, although the process is progressing "slower" than anticipated due to supply chain challenges and limited aircraft availability for refurbishment at any given time.
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