With the merger of Vistara with Air India and that of AirAsia India with Air India Express done, CEO Campbell Wilson is thrilled at what he refers to as "The Everest of corporate turnarounds” citing a media report. What is infinitely more exciting for him is his growth projection — he believes Tata’s aviation juggernaut in the growth areas of Indian aviation in the coming months and years.
But which are these areas? You will be surprised at Campbell’s answer.
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Forget the arterial Delhi-Mumbai services, the glamorous India-New York or India-Europe sectors, or even the cash-spewing (some might say cash-squeezing) Gulf routes. The big boom in India’s commercial aviation is going to come from domestic routes, including the untapped potential of second and third-tier cities, as well as short-haul international routes.
“We are looking at a lot of efficiency and consistency in 2025,” Wilson told this correspondent at a debrief of select media persons at the swanking new Air India headquarters in Gurugram on Thursday.
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The Air India (AI) CEO’s confidence comes from the successful completion of the internal jugglery he’s been at for the past couple of years — merging the four airlines (Campbell says it is actually five airlines, pointing out how the merger of AI with erstwhile Indian Airlines back in the late 2000s was never fully ‘consummated’) has at least the pivotal stage earlier this month with Vistara merging into AI.
“The heavy lifting has already been done,” Campbell says, referring to the alignment of over 140 IT systems across AI and Vistara, bringing in the 6,000 staff of Vistara and the 70 aircraft between them, as well as consolidation of over 4,000 vendors and 3,000 airline contracts.
The result is a 30,000-staff-strong airline with 300 aircraft (including Air India Express), and 9 lakh passengers which controls 55% of the metro routes. Post-merger, the single-digit market share of the different entities now amount to nearly 30% of Indian aviation, even if that brings in worries of the world’s fastest-growing aviation market having just one full-service carrier, and a duopoly between it and market leader Indigo, controlling over 90% of the market.
But Campbell’s worries are more over the delay at Boeing’s end in delivering the 470 aircraft AI has ordered, and having to work with the older ‘legacy aircraft’ he’s been saddled with. While he believes older planes are an issue, he told THE WEEK that the legacy workforce (read: employees from the government-run days of AI) has been less of a worry.
“When we offered voluntary retirement schemes, many took it, either because they were senior, or because they felt they could get other employment. The remaining employees with us are those who are excited at the personal and professional opportunity being with Air India at this stage provides,” he said.