Rwandair Signs Codeshare Agreement With Turkish Airlines

RwandAir continues to expand its global reach and has spread its wings further by signing a codeshare agreement with Turkish Airlines. The new partnership, inked on April 11, will offer RwandAir customers more travel choices, convenience, and connectivity both from Kigali International (KGL) and Istanbul International Airport (IST). The codeshare comes at a time when the Kigali-based carrier is expanding its operations and establishing itself in the long-haul market.

Access to an extensive network

Turkish Airlines is one of the world’s leading carriers with the most extensive route network. The airline operates flights to over 300 destinations worldwide and over 50 in Africa, connecting them with the rest of the world. In April and May 2023, Turkey’s flag carrier will be operating seven flights a week to Kigali.

RwandAir customers traveling from Africa will have access to Turkish Airlines’ vast network across five continents. Similarly, passengers flying on Turkish Airlines will have access to RwandAir’s intra-Africa network to reach even more cities.

RwandAir is Africa’s fastest-growing airline, providing safe and reliable services in the air transportation industry. The new codeshare with Turkish Airlines is a significant opportunity for growth. RwandAir CEO Yvonne Makolo said,

“We are incredibly excited to have signed this new codeshare agreement with one the world’s largest and leading carriers, Turkish Airlines. This landmark move will not only allow our customers to access the 124 countries served by Turkish Airlines, but will improve connections for inbound travelers to Africa via our extensive continental network.”

Turkish Airlines is recovering well from the effects of the pandemic, as the latest statistics show. In March, the airline carried about 6.1 million passengers, a 27.5% increase compared to March 2022. In the first quarter, the airline lifted about 17.1 million passengers, a significant increase from the same period last year.

Africa and the global market

Many international airlines continue to add destinations in Africa and increase frequencies on current routes. Africa is leading in the recovery from the pandemic, which airlines can leverage to increase their services to and from the continent.

Consolidation and partnerships like the codeshare between RwandAir and Turkish Airlines give global travelers better access to the African market. This will boost trade, tourism, and economic activity and help unlock the continent’s great potential.

Rwanda’s flag carrier also has strategic partnerships with Qatar and British Airways. It continues to explore commercial opportunities to strengthen its global presence and maintain its relationship with the African customer base. Yvonne Makolo added that,

“RwandAir is always exploring new commercial opportunities to expand its reach into markets which can deliver financial return and benefit our growing customer base.”

The airline aims to link Rwanda with the rest of the world while operating aircraft and other equipment maintained to the highest international standard. To expand its network and serve its new destinations, the airline recently took delivery of a third Airbus A330. The aircraft has been deployed on its international routes.

Source: Simple Flying

Artificial Intelligence can fly KQ into recovery

Artificial Intelligence (AI) has the potential to power Kenya Airways (KQ) to recovery. Widespread use of technology is beginning to influence how consumers are treated and make organisations understand their needs.

This is because AI-powered chatbots provide personalised and immediate assistance to every client. As a result, airlines become more productive.

AI evaluates travellers’ data and provides personalised travel experiences in the airline sector. Because of this new area that AI has brought into the business, KQ can be on track to recovery.

And as the economy is trying to recover from the effects of the pandemic, the aviation industry must learn how to manage consumer and employee-labour relationships.

A healthy work environment fosters a culture of creativity and excellence.

A look at the industry reports in 2022, the airline moved 65,000 tonnes of cargo, increasing tonnage by 3.5 percent.

In addition, by the end of 2022, 10.3 billion Available Seat Kilometers (ASKs) were deployed, up 75 percent from the 5.9 billion reported over the same period in 2021.

Because of this, passenger load factors in 2022 were just 3.9 percentage points lower than those attained in 2019 before the pandemic.

In 2022, KQ’s revenue increased by 66 percent to Sh117 billion. In addition, passenger numbers were up 68 percent to 3.7 million compared to 2021. All these indicators show that KQ is on a recovery path.

Despite all these stellar performances given the challenges that affected the industry, there are clear signs that it has some work to do to lower operating costs that went up by 93 percent due to escalating fuel costs, forex losses, volatility of the shilling and the financial restructuring.

Further, a strategy to leverage technology for more remarkable productivity improvement is imperative. AI, for example, will assist in regaining consumer confidence, reducing costs, and improving operational efficiency.

It is also time to review its European strategy if the current partnerships restrict its expansion to directly compete with other African carriers.

A flexible partnership strategy with other airlines, travel companies, and airports is more desirable to expand its customer base, improve efficiency, and cut costs.

It is not clear why the airline’s Europe presence is limited to a few cities compared to its African rivals such as Ethiopian Airlines.

Like other airlines globally, KQ should invest in new technologies to improve safety, efficiency, and customer experience.

For example, biometric facial recognition and fingerprint scanning technologies streamline check-in and boarding processes.

Further, it will help reduce wait times and enhance security. In addition, intensify the use of self-service kiosks, mobile apps and a robust online booking platform.

Even though there are similar challenges facing the entire airline industry, according to the International Air Transport Association (IATA), the sector expects a return to profitability next year as airlines continue to reduce losses stemming from the effects of the Covid-19 pandemic.

Some of the airline’s challenges that are being looked into are the restructuring of its financial arrangements, which requires broader support from the government.

For instance, the government of the United States gave the aviation sector $50 billion in grants and loans in March 2020 through the Coronavirus Assistance, Relief, and Economic Security (CARES) Act.

Similar policies have also been adopted by other nations, such as offering airlines grants or low-interest loans to aid them with operational costs and staff retention.

Governments have yet to take steps to boost the aviation sector more generally, such as lowering taxes and fees for airlines and investing in airport facilities to promote the resumption of air travel.

With the slow recovery of air travel demand, these actions are meant to assist airlines in recovering from the pandemic and resuming sustainable operations.

We learn from others. Emirates Airlines, for example, has played a significant role in promoting Dubai as a popular tourism destination.

In addition, the airline’s marketing initiatives have contributed to developing a favourable perception of the UAE as a modern, cosmopolitan nation.

The sight of KQ in foreign airports evokes nostalgia and a sense of pride in many Kenyans. In it lies an excellent opportunity to leverage its branding potential to revive our tourism sector.

The country stands to benefit from KQ’s success as it contributes to the branding of Kenya. It symbolises Kenya’s identity and culture, and we must ensure its recovery.

Investment in technology precipitates greater profitability in the days to come.

Source: Business Daily

Malawi Airlines Resumes Service To Kenya

Air Malawi has re-introduced flights between Lilongwe and Nairobi.

Malawi Airlines is now offering customers more options and more destinations with the re-introduction of flights between Malawi and Kenya.

The airline restarted its scheduled service between Lilongwe Kamuzu International (LLW) and Nairobi Jomo Kenyatta International (NBO). Malawi Airlines has also re-introduced Friday NBO flights between the two destinations.

The first flight ET51, which was operated on a Boeing 737-800, took off from NBO at 06:33 and arrived at LLW around 07:30. The flights from Malawi will be operated on Wednesdays, Fridays, and Saturday. Meanwhile, the return flights will be operated on Thursdays, Saturdays, and Sundays.

Connecting Southern Africa to Kenya

Jomo Kenyatta Airport is among the busiest airports in Africa, connecting many Africans to the rest of the world. Recently, Kenya and South Africa removed visa requirements for their citizens, which gives Kenyans easier access to Southern Africa. Furthermore, adding flights on the LLW-NBO route will provide a convenient connection for Malawians and other Southern Africans to Europe, Asia, and North America.

Malawi Airlines was formerly known as Air Malawi and then Malawi Airlines until 2016. It was established as a joint venture between the Malawian government and Ethiopian Airlines, so its flights use the code ET. It is the flag carrier of Malawi; however, Ethiopian Airlines operates it under a management contract and owns a 49% stake.

The airline continues spreading its wings and offers flights to popular destinations like Johannesburg and Dar es Salaam. Its partnership with Ethiopian Airlines allows frequent flyers to earn and spend rewards on Malawi Airlines flights.

The airline had been recording losses since 2014 but has been profitable since 2021. As it has recovered from the effects of the pandemic, it has maintained its reputation for providing quality services around Southern Africa. Malawi Airlines currently has a fleet of three aircraft; two B737s and one DHC-8-Q400.

Connecting Africa with International Markets

The resumption of flights between LLW and NBO will boost intra-Africa connectivity. It comes at a time when stakeholders are making efforts to boost flights within Africa by African airlines. Kenya Airways and Astral Aviation also operate flights on this route.

In addition to intra-Africa air travel, airlines continue enhancing their international networks. As the world has opened up, we are seeing numerous African airlines flying to new destinations beyond the continent and the re-introduction of previously popular routes.

Jomo Kenyatta Airport is set to see more activity as another airline plans to connect it with international markets. Nairobi-based Astral Aviation seeks to spread its wings to Abu Dhabi, connecting Kenya with the Middle East. Following a codeshare agreement with Kenya Airways Cargo, the carrier has now signed a memorandum of understanding with Etihad Cargo.

Ethiopian Airlines is no stranger to the international market, which it continues to explore. Earlier this week, the carrier relaunched flights between Addis Ababa Bole International (ADD) and Singapore Changi International airports (SIN).

After ceasing flights due to the pandemic, Ethiopian Airlines returned to Singapore and received a warm welcome. The airline will operate four weekly flights between the two destinations. Singapore is one of the world’s financial hubs, so the resumption of these fights will boost trade and tourism between Africa and Asia.

Source: Simple Flying

Airlines warn blocked funds dispute could hamper Africa growth

(Reuters) – Global carriers warned on Monday that concerns over blocked airline funds in Africa and elsewhere could lead to interruptions in air services if there is no progress in talks to unfreeze money owed.

About $1.6 billion of funds are being withheld in various Africa countries due to currency shortages or other problems, the International Air Transport Association said in a briefing on the launch of an initiative to boost African aviation.

“The people who suffer as a result of these blocked funds are consumers in these markets, because you cannot expect airlines to continue to provide services if in effect they’re not being paid,” IATA Director General Willie Walsh said.

The issue of airline funds’ being blocked in some countries where carriers operate has been rising as demand for hard currency outpaces supply, with IATA stepping up efforts to whittle down a deficit that grew 25% in the last six months of 2022 alone.

According to the Geneva-based body, which represents most of the world’s major airlines, Nigeria tops the list of countries holding back funds, with Algeria and Ghana also involved.

A total of $2.4 billion is being blocked worldwide.

Nigeria faces severe shortages of foreign currency, meaning airlines cannot easily convert local currency to repatriate revenues earned from ticket sales by foreign airlines.

Aviation Minister Hadi Sirika has said he can only continue to urge the central bank to make dollars available to airlines.

A spokesperson for the Central Bank of Nigeria did not immediately respond to a request for comment on Monday.

About half the $1.6 billion frozen in Africa is tied up in Nigeria, RwandAir Chief Executive Yvonne Makolo told the IATA briefing.

Makolo, designated as the next chairperson and first female leader of the board of the influential IATA, also called for faster progress towards setting up a common aviation market in Africa.

Efforts to liberalise flying, echoing Europe’s single aviation market, have been under discussion since a landmark treaty known as the Yamoussoukro Declaration in 1988, which was updated 11 years later.

Supporters say liberalising frequencies, fares and capacity would lift barriers that in the past have increased costs.

But despite a fresh initiative by the African Union to create a single African air transport market (SAATM) in 2018, backed by more than 30 states, implementation has been slow.

Analysts say some carriers fear they would be exposed in a market already pinched by competition from the Gulf and Turkey.

Makolo said freeing up the movement of goods and people by air would support the flagship African Continental Free Trade Area (AfCFTA), which the World Bank estimates could lift tens of millions out of poverty by 2035.

“It’s an exciting opportunity for the continent, which we really need to take advantage of as quickly as possible,” she said.

Africa’s aviation market is recovering faster from the pandemic than the overall industry but is expected to remain in loss, due in part to higher costs and weak infrastructure.

Traffic is expected to double by 2035, IATA said.

Source: Reuters

Uganda Airlines Restarts Direct Kigali Flights

Uganda Airlines restarting direct flights to Rwanda gives Simple Flying the opportunity to review Uganda Airlines’ progress.

Africa’s Uganda Airlines is restarting direct flights to Kigali, the capital of Rwanda. The two countries are excited at the possibility of boosting connectivity and trade, especially as Uganda Airlines was reborn in 2023.

Restarting flights a vehicle of diplomacy

According to the Ugandan news website NewVision, the flights are intended to be a means of patching up relations between the neighboring countries of Rwanda and Uganda. After difficult times starting in 2018 until 2022, when the border was reopened – Uganda’s Minister of Foreign Affairs hailed the progress towards healing.

“We are brothers and sisters. Indeed, there have been some difficulties but with the consensus reached by our leaders, progress has been made in normalizing relations. I am confident that through joint efforts, our excellent relations will continue to flourish in the years ahead.”

Rwanda’s Foreign Affairs Minister Vincent Biruta also voiced similar sentiments. It’s worth noting that RwandAir already offers flights between the two nations.

But troubles are present for Uganda Airlines

Earlier this week, according to the Ugandan independent daily newspaper the Daily Monitor, the Public Procurement and Disposal of Public Assets Authority (PPDA) Tribunal canceled a fuel and in-flight services supply contract. The PPDA found that Uganda Airlines needed to tender the contract fairly. Being the previous contract has expired, Uganda Airlines intends to promptly reopen the contract for bids.

This is part of the ongoing corruption investigation into operations at Entebbe. Bribery, extortion, and document tampering – including with passports are all being exposed. Since 2020, no less than 26 Entebbe Airport workers have been relieved of duties as a result.

Nonetheless, Uganda Airlines has ambitions

Nonetheless, Uganda Airlines has ambitious plans for its future. For instance, Airbus and Boeing are both pitching their fleets ahead of a future aircraft order. Uganda Airlines already ordered two Airbus A330-800 aircraft. There is also the distinct possibility that Embraer’s E190-E2 and E195-E2 aircraft may also be ordered as they offer double the capacity of Uganda Airlines’ current CRJ900s and efficient performance. Nonetheless, for an airline with only six planes – four CRJ900 and two Airbus A330neo jets – this is a significant event.

Uganda Airlines is also making plans to connect directly to London, United Kingdom. However, for the connection to happen, Entebbe Airport must meet international standards of facility and operations.

Overall, Uganda Airlines is increasingly making intra-Africa connections. One of them is to Johannesburg, South Africa to meet growing demand. The flights are now five times a week. Another connection is to Nigeria, starting last November as the first flight to West Africa.

Source: Simple Flying

RwandAir expands wide-body fleet with delivery of third A330

RwandAir has taken delivery of an Airbus A330-200, the airline’s third long-haul aircraft.

The aircraft, registered 9XR-WX, was delivered to Kigali International Airport (KGL) on March 18, 2022, the airline said in a statement published on Twitter.  

RwandAir’s CEO Yvonne Makolo said the aircraft would allow the Rwandan flag carrier “to continue our route expansion and offer customers even more connections”. 

The new aircraft will operate to RwandAir’s key destinations in Europe, Africa, and the Middle East, as well as to London, Brussels, Lagos, and Dubai, the statement added.  

Fleet expansion and route development 

The arrival of RwandAir’s new A330 aircraft comes four months after the airline’s cargo arm, RwandAir Cargo, received a Boeing 737-800 SF, its first cargo-dedicated aircraft. 

The freighter was delivered on November 24, 2022, and was intended to support the expansion of the airline’s cargo operations, operating to destinations in Africa and the Middle East, including Johannesburg, Nairobi, and the United Arab Emirates (UAE).  

RwandAir launched direct flights to London from its hub in Kigali in November 2022, operating four weekly flights to London Heathrow Airport (LHR). The airline had previously operated three weekly flights to LHR via Brussels. 

In addition to expanding its long-haul fleet, Makolo also hinted at the airline’s plans to grow its 737 fleet and make changes to its regional fleet.  

During a podcast interview with AviaDev Insight Africa Makolo highlighted RwandAir’s plans to phase out its existing fleet of Bombardier CRJ aircraft and explore alternative options for its regional fleet. 

Source: Aerotime Hub

Lufthansa Commits To East Africa With More Nairobi Flights & New GM

Lufthansa has appointed a new General Manager for the East Africa region and will now fly between Frankfurt and Nairobi daily.

The Lufthansa Group is reaffirming its commitment to East Africa by relocating the commercial responsibility for the passenger service back to Kenya.

The group has appointed a new General Manager for the East African region stationed in Nairobi, Kenya. The airline will further increase its presence in Kenya by adding more flights from Frankfurt, while Swissport will offer more services to the German flag carrier in Nairobi.

An experienced General Manager for East Africa

Effective March 1, Lufthansa appointed Kevin Markette as the new General Manager for the East African region, which includes Kenya, Ethiopia, Uganda, Rwanda, Burundi, and Tanzania. With a physical presence in the region, he will be able to manage the demands of the local market directly.

Markette succeeds Dr. André Schulz, who has now been appointed Head of Region Middle East, Africa, South Asia, and CIS at Lufthansa. Kevin will report to Philippe Saeys-Desmedt, Senior Director of Sales Sub-Sahara Africa, Lufthansa Group, in his new role.

The group is pleased to have Kevin on the team in East Africa. Lufthansa is confident that he will continue strengthening the relationships developed with businesses and customers in the region. Philippe Saeys-Desmedt said;

“It is our pleasure to welcome Kevin Markette to this important and dynamic region. We draw upon Kevin’s vast global experience, including that on the African continent, to enhance our market position and trustful relationships established with our business partners and customers. Being now located with his team in the East African region, seated in Nairobi, he will quickly forge new relationships in the region.”

Kevin is an individual whose experience and qualifications speak to his reputation. Educated in Pretoria, South Africa, he has qualified as a commercial pilot and well-versed airliner with over 23 years of experience working with the Lufthansa Group.

He previously headed up several teams within the Sales and Customer Servicing organization of the German organization across various cities, including New York, Atlanta, Accra, Dubai, Lagos, Karachi, and Johannesburg.

Increased schedule between Frankfurt and Nairobi

Global travel is not far from pre-pandemic levels, so various international markets have seen increased demand. To meet this, additional capacity is required, and Lufthansa has reviewed such demands and made necessary adjustments for the upcoming summer flight schedule where possible.

From June 3, the airline will expand its connection between Frankfurt International (FRA) and Jomo Kenyatta International (NBO) airports. The summer flight schedule will be increased from five to seven weekly flights. The additional flights will arrive in Nairobi at 20:30 daily and depart for Frankfurt at 22:25 EAT.

Simultaneously, Lufthansa’s leisure carrier, Eurowings Discover, will continue to operate its four weekly summer flights between Frankfurt and Mombasa. This will bring the total capacity between Kenya and Germany to a staggering eleven weekly flights.

Important strategic market for Lufthansa

Lufthansa Group has significant commercial interests in the East African region as it already serves Mombasa, Zanzibar, and Kilimanjaro through Eurowings. New East Africa GM Kevin Markette said in a statement;

“East Africa is undoubtedly one of the most important markets for us on the continent, and our booking figures reflect that the region is particularly popular with holidaymakers from Germany and abroad. Thanks to the vast expansion of our route network on the continent, together with our Group airlines, our customers can now reach their idyllic holiday or business destinations much faster and more directly.”

Furthermore, by increasing its frequency to Nairobi, Lufthansa is underlining the importance of Kenya for the group and its long-term commitment to the region. Markette added, “such positive developments can only be accomplished through strong partnerships with Kenyan corporates who share a common goal and who supported and trusted us throughout the recent challenging years.”

Lufthansa cargo handling in Nairobi

Before announcing the new flight schedule, Lufthansa Group extended its contract with ground and cargo handling services company Swissport in Nairobi. The latter has provided airline ramp and gate services at the Nairobi airport for more than 11 years.

The continued partnership with the German flag carrier will now include air cargo and warehousing services. Swissport Kenya Managing Director Racheal Ndegwa said in a statement;

“Air cargo handling and warehousing are crucial components of our business, and we are proud to match the needs of Lufthansa Cargo with our operational readiness and world-class facilities here in Nairobi.”

In 2022 Jomo Kenyatta Airport ranked as the eighth-busiest airport in Africa, therefore, it is an essential travel and logistics hub for many international airlines. Swissport currently serves over 20 airline customers in Nairobi, managing 320 flights and nearly 6,000 tonnes of cargo monthly.

Source: Simple Flying

Airlink to start flights between Johannesburg and Nairobi

South African regional airline Airlink has announced that it is starting a major new international route, between Johannesburg and Nairobi, Kenya, next month. Airlink will become the first private-sector airline to operate on this route.

This will make Kenya the third East African country, and the fifteenth African country, served by Airlink. The new service will start operating on April 24, and will be operated daily.

“Airlink’s entry on the route supports last November’s agreement by Kenya and South Africa to eliminate trade barriers and strengthen commerce and economic ties by opening up business and cooperation between the two major economies in key sectors and markets,” explained airline CEO and MD Rodger Foster. “It also follows South Africa’s removal of visa requirements for Kenyans visiting South Africa for up to 90 days (South Africans do not require visas to visit Kenya).”

The carrier will operate the service using its 98-seat Embraer E190 jet airliners. The Johannesburg-Nairobi flights will be coded 4Z 070, and depart at 09h40, arriving in Nairobi at 14h45. The return flights will be coded 4Z 071 and leave Nairobi at 15h45, landing at Johannesburg at 19h05.

“This is also an important moment for Eastern-Southern Africa connectivity,” he highlighted. “With Airlink’s network now including Kenya, Uganda, Tanzania and most of the Southern Africa Development Community nations, we offer travellers the widest set of choices and convenient regional and intercontinental connections on our aircraft and with our global carrier partners. These enable the businesses and economies Airlink serves to expand their own respective market reach. Similarly, our competitive services will promote tourism in both markets, generating additional foreign travel spend.”

Airlink operates a fleet of 60 jet airliners and, over the past two years, according to Airports Company South Africa, has achieved an average on-time departure performance of 95.73%. It also operates flights to St Helena Island in the South Atlantic. It is a member of the International Air Transport Association (IATA) and is accredited under the IATA Operational Safety Audit programme.

Source: Engineering News

Air Mauritius eyes A321neo, grows fleet with A330-200s

Air Mauritius (MK, Mauritius) is considering the acquisition of an A321-200N to serve Rodrigues Island once the airstrip on the island has been sufficiently extended and once the airline grows its fleet with the expected arrival next month of two A330-200s on a three-year lease from Carlyle Aviation Partners for use on medium-haul destinations, including a new twice-weekly service to Delhi International in India from May 3.

The A330s will also be deployed on existing routes to St. Denis de la Réunion and to Antananarivo, Madagascar, Mauritius’ Defi Media reported. The widebodies would allow Air Mauritius to offer more frequencies and help it adapt its fleet to market and passenger needs.

According to the ch-aviation fleets advanced module, the aircraft are the 254-seater VP-CPJ (msn 751) and VP-CPQ (msn 807) previously flown by Fiji Airways (FJ, Nadi). Delivery has been delayed since the end of 2022. The airline also has an outstanding order for two A350-900s (registration number unknown), according to ch-aviation fleets advanced data.

The expected arrival of the two new A330s will bring the number of aircraft in the fleet to 11. This includes two A330-900Ns from Air Lease Corporation; four A350-900s (two leased from AerCap, one leased from Tokyo Century, and one-inhouse aircraft); and three owned ATR72-500s.

Air Mauritius’ new chief executive, Kresimir Kucko, was not immediately available for more information on the A321neo plans. The aircraft type is classified as suitable for Code 4C category airports as defined by the International Civil Aviation Organisation (ICAO), requiring runways that are 1,800 metres or longer. The present runway at Rodigues measures 1,287 metres, according to the ch-aviation PRO airports module.

Since its return to service at the end of 2021 after 18 months of voluntary administration to avoid liquidation, Air Mauritius has gradually resumed operations with flights showing satisfactory load factors on most routes, the report said.

Source: Ch-Aviation

Air India to Bid Goodbye to Vistara Brand in Airline Merger

It’s still way too early to tell whether it was the right decision to nix the Vistara brand, but Air India clearly has its work cut out for itself as the brand name also comes with a lot of baggage.

The Tatas will let go of Indian full-service carrier Vistara as they look to merge the airline with the more “internationally-recognized” Air India, Air India CEO Campbell Wilson said on Monday.

Wilson told news agency Press Trust of India that efforts would be made to retain some of the “Vistara heritage in that new manifestation.”

He added that the process of Vistara’s integration with Air India is awaiting regulatory approval from the Competition Commission of India.

AirAsia India will also be merged with Air India Express. “In the next couple of months we will start deploying more public facing steps that will indicate the coming together of these two airlines,” the Air India CEO said.

Once completed, the Tatas will end up with one full service and one low-cost airline, Wilson said, while reiterating the aspiration of attaining that 30 percent aviation market share objective in India both domestically and internationally.

Calling it an amalgamation of the existing assets, Wilson said, “We are picking the best from each of those airlines to carry forward and using the combined economies of scale and combined knowledge to elevate the proposition beyond what’s offered by any of the existing airlines currently.”

The mergers would also help the group to tap a market segment that it previously hasn’t been quite equipped to take full advantage of, according to the CEO.

Air India’s Record Aircraft Orders

While there have been talks of Air India’s record order of 470 aircraft from Boeing and Airbus, Wilson said the task is more than just buying aircraft. “It’s the absolute and complete transformation of Air India,” he said speaking to Indian media.

With the Tatas taking over Air India, the erstwhile Indian state carrier, in 2022, the transformation has been focusing on three phases, Wilson said.

In the current take-off phase, Wilson said they have been putting a comprehensive effort to address some of the issues that have accumulated over many years of underinvestment, addressing system shortages and restoring aircraft to flying service.

Wilson said despite the challenges the airline has so far announced 16 new international routes and capacity has been increased on nine others.

United Arab Emirates’ national carrier Emirates is also reportedly looking at a codeshare pact with Air India, according to reports in Indian media.

Having already put significant capacity into North America from both Delhi as well as Mumbai and some from Bengaluru, the airline has also added capacity into Europe — Milan, Copenhagen, Vienna, and now has 12 services into Gatwick.

The airline is also looking to establish direct connectivity with New Zealand. No airline currently offers direct flights between the two countries. 

The Investments

The Tata Group is not shying away from investing in the Indian aviation sector, Wilson said. “The aircraft order requires a significant sum and how that will be funded is a matter of internal deliberation but there are many sources.”

The group plans to fund its $70 billion order for a record 470 aircraft with internal cash, equity and through sale-and-leasebacks, according to a Reuters report.

The group has also committed $400 million in refurbishing the existing aircraft and more than $200 million in upgrading and improving the IT systems, according to Wilson.

He said the group is also investing significantly in a training academy and is in deep discussions with a number of potential partners to set up what will be one of the world’s largest training academies in India.

“As time progresses, we can build our own talent pipeline clearly for Air India as the first priority. But secondly, and perhaps more significantly, for India as a whole,” he said.

And with all that investment, profitability is definitely an objective for the group. But Wilson said the group is not putting any time to any milestones, as it is a work in progress.

“There’s a lot of growth that we need to invest in, a lot of capabilities that we need to strengthen and deploy,” he said.

Source: Skift