Air India has an ageing fleet problem: Can record orders and retrofits fix it?

Dubai: In February 2023, Air India made aviation history with one of the world’s largest aircraft deals—470 new planes from Airbus and Boeing worth a staggering $70 billion at listed prices. But behind that headline-grabbing move lies a more sobering reality: a large portion of the airline’s current fleet is aging—and in some cases, fast becoming obsolete.

According to government data, 43 of Air India’s operational aircraft were over 15 years old, while 27 others fell into the 10–15-year range as of early 2025. That means more than a third—37%—of Air India’s fleet is over 10 years old, a troubling stat in a competitive industry where passenger comfort and fuel efficiency are paramount.

The Boeing 787-8 Dreamliner that tragically crashed in Ahmedabad in mid-2025 was 11.5 years old and had clocked more than 41,000 flight hours, according to aviation analytics firm Cirium. It was by no means ancient—many global carriers fly aircraft older than that—but it cast a harsh light on the state of Air India’s legacy fleet.

By comparison, competitor IndiGo operates a much younger fleet. Just 7.6% of IndiGo’s 437 aircraft are over 10 years old, with the vast majority being less than five years old. And yet, aging fleets are not unique to India. Delta Air Lines and United Airlines operate fleets with average ages of over 15 years, while Lufthansa and British Airways average over 13 years.

Still, what matters is not just age but maintenance, refurbishment, and passenger experience—areas where Air India is now playing rapid catch-up.

After its return to Tata Group ownership in 2022, Air India has embarked on an ambitious turnaround. Its fix for the aging fleet problem is threefold:

The crown jewel of Air India’s fleet strategy is its record-breaking aircraft order:

With deliveries stretching into the early 2030s, this pipeline aims to completely transform the airline’s domestic and international services.

While waiting for new jets, Air India is spending $400 million (₹34.5 billion) to retrofit 106 aircraft already in service. This includes:

This is critical to bridging the experience gap passengers face on older aircraft.

Air India is also:

CEO Campbell Wilson has emphasized a proactive safety culture and institutional changes aimed at minimizing risks and improving reliability.

India’s aviation regulator, the DGCA, has no fixed age limit for operating commercial aircraft. As long as planes are well maintained and meet manufacturer requirements, they are considered airworthy.

Still, the cost of operating older aircraft—rising maintenance bills, fuel inefficiency, and passenger dissatisfaction—often makes retirement more economical.

When the Tata Group reacquired Air India in 2022, the airline was deep in debt (₹615.62 billion) and losing ₹95.91 billion annually. Since then, its operating profitability has improved significantly. EBITDAR has grown fourfold in three years, and losses have been cut by over 40%.

The carrier flew 43.5 million passengers in FY2025 and now operates 205 aircraft, with more than 100 under the low-cost Air India Express banner following its merger with AirAsia India. Growth has been rapid—adding an aircraft per week since September 2023—but future plans are even more ambitious: from FY2027, Air India expects to induct two aircraft every week.

Despite the size of the orders and scale of refurbishment, experts caution that visible, widespread improvement will take time. Long-haul aircraft deliveries are staggered until 2030, and refurbishments are resource-intensive.

Competitors like Qatar Airways and Emirates, with similarly aged but better-maintained fleets, have long set the benchmark for luxury and consistency. If Air India wants to reestablish itself as a serious global player, modern jets alone won’t be enough—reliability, consistency, and customer experience will be key.