Air India CEO Campbell Wilson has provided insights into the process of transforming the airline from a state-owned entity into a thriving private enterprise. In an exclusive interview with Business Today, Wilson described his experience at the airline so far as "a whirlwind of excitement and action."
Wilson explained that the transformation journey involved not just the flagship airline but also its subsidiaries, such as Air India Express, Vistara, and Air Asia India. This effort included substantial changes in personnel, systems, and culture, signifying a significant shift from government ownership to the private sector.
"We've undertaken a lot of transformation, brought many people into the business, and established a new culture. It has been full-on but very, very exciting," he stated.
While some aspects of this transformation have been observed in other airlines previously, Wilson believes that the scale of change at Air India is unprecedented and unmatched worldwide.
"I think some elements of it have been done before – public sector transitioning into the private sector, airline mergers. However, I don't believe we've seen something of this magnitude," he added.
Discussing the future of Air India, Wilson emphasized the company's ambitious vision supported by significant commitments. Regarding the scale of transformation, he mentioned the airline's deal to purchase 470 aircraft, with around 36 more leased – just the initial steps in its journey.
"And that really is just the beginning of what will be the journey of Air India. India's burgeoning aviation market, which ranks as one of the world's largest, is growing rapidly and provides significant opportunities for expansion."
India's strategic geographical location and its extensive diaspora spanning major global markets further fuel Air India's growth aspirations. Wilson highlighted the airline's pivotal role in connecting various regions and promoting economic development.
"And that really is just the beginning of what will be the journey of Air India. India is already, by some measures, the third-largest aviation market in the world. It is growing at a faster pace than all of the other major markets," he noted.
"The opportunity to reach the rest of the world and put India's stamp and the New Air India's stamp on the world is ahead of us, and so we're very excited by it," Wilson added.
The positive effects of Air India's transformation are already evident in performance metrics, according to Wilson. He pointed out improvements in load factors, passenger numbers, and punctuality.
Market share, which was below 10% at the time of privatization, has now risen to approximately 26-27%, Wilson noted. He stressed that progress is being made incrementally as the airline continues to work toward its goals.
"While much work has been happening behind the scenes over the last 18 months, the next 18 months will see much of that begin to manifest in the public eye and the way travelers experience Air India. So, I think the transformation will be seen to accelerate in the year and a half ahead," Wilson explained.
Addressing concerns about airfare levels, Wilson clarified that pricing dynamics are influenced by supply and demand. He mentioned that Air India offers a range of fares, with some priced below the marginal cost of operation. Airfare pricing adjusts based on demand strength, ensuring passengers have options aligned with their preferences and travel needs.
Wilson emphasized that the highest fares are typically observed when demand is strong, a phenomenon common across the airline industry, not unique to Air India.
The interview also delved into India's potential as an aviation hub, driven by the country's favorable geographic position for connecting regions like Europe, Asia, and Australasia. Wilson foresees India evolving into a significant hub over the next five to ten years, driven by increased connectivity, traffic flow, and Air India's expanding network.
