Turbulence to turnaround: Air India plans major upgrade with new jets, lounges; vows ‘world-class’ service by 2026

Air India is set to roll out a major refresh of its aircraft, cabins and lounges as part of a wider push to win back passengers after the tragic June crash that killed 260 people. The Tata-owned airline, which has been working on a long-term turnaround since its takeover four years ago, is now preparing visible improvements across its fleet and services.Chief executive Campbell Wilson acknowledged that the accident — involving an Air India Boeing 787 that went down shortly after take-off from Ahmedabad — shook customer confidence. “I think it’s only natural that when an event such as this happens that people are nervous,” he told reporters, as per ET. He said the airline saw a dip in bookings in the immediate months after the incident, but demand has since stabilised.Wilson said passengers will start noticing “the most significant change” from 2026. By the end of next year, 81% of Air India’s international flights will be operated by upgraded aircraft. His comments came during the opening of the airline’s new training academy in Gurugram — a facility built with an investment of more than $200 million (Rs 1,782 crore) and spread across 600,000 square feet.Air India has faced delays in receiving new aircraft because of global supply chain issues. Wilson explained that the airline had expected to receive 28 newly designed planes by now, but “the actual number… is zero,” reported ET. Despite this setback, nearly 80% of its narrow-body fleet used on domestic and short-haul routes has already been refurbished with new seats and interiors.Work on long-haul planes will take longer. The refit for Boeing 787 Dreamliners — used on Europe and Australia routes — will run until mid-2027, while upgrades for Boeing 777 aircraft are expected to finish in 2028.Wilson said that as these improvements roll out, more services to Europe, Australasia and key Southeast Asian destinations will feature the “new world-class Air India” starting 2026. The airline expects around 26 new aircraft next year, including six long-haul jets.Air India is also revamping its premium offering. Its new Airbus A350s will feature first-class cabins in addition to business class, and its A320 fleet will see upgraded interiors. Fresh lounges are being planned in Delhi, Mumbai, Dubai, London, New York and San Francisco.The Ahmedabad crash has also brought tighter regulatory scrutiny. The Directorate General of Civil Aviation has issued multiple show-cause notices to senior executives over procedural lapses, ET reported. Wilson said initial findings did not indicate any fault in Air India’s aircraft or engineering standards but confirmed that the airline has strengthened its safety processes.