The airline’s wider group, which includes Air India Express, is also preparing for a significant expansion, with more than 100 new aircraft expected to be inducted across 2027 and 2028.
Air India Chief Executive Officer Campbell Wilson disclosed the plans during a town hall with employees, reaffirming the airline’s focus on long-term improvements despite the challenging operating environment facing the aviation industry.
The carrier is currently contending with elevated jet fuel prices, geopolitical tensions, airspace restrictions, currency depreciation and weaker demand on the India-US route, all of which have added pressure to its operations.
16 Boeing 787-8s Set for Upgrade
Air India’s $400 million legacy fleet retrofit programme is progressing, with the refurbishment of its narrowbody aircraft already completed and work now shifting further towards its widebody fleet.
Three retrofitted Boeing 787-8 aircraft have already been inducted in 2026, while four additional aircraft are expected to return to service before the end of the year.
The airline plans to refurbish another 16 Boeing 787-8 aircraft in 2027. Once the work is completed, the upgrade programme for the carrier’s legacy 787-8 fleet will be close to completion, creating greater consistency in the cabin experience across its long-haul network.
The refurbishment programme includes redesigned cabin interiors, new seats and upgraded inflight entertainment systems. The improvements are intended to bring the older Boeing 787-8 aircraft closer to the standards offered on Air India’s newer widebody jets.
Air India had previously announced plans to comprehensively upgrade its 26 legacy Boeing 787-8 aircraft as part of its broader transformation programme.
New Aircraft to Drive Fleet Growth
While older aircraft are being refurbished, Air India is simultaneously expanding its fleet with newer-generation aircraft.
The carrier has taken delivery of three Boeing 787-9s in 2026, while two Airbus A350-1000 aircraft are expected to join the fleet later in the year.
The wider Air India Group is targeting a much more aggressive expansion over the following two years, with more than 100 new aircraft planned for induction in 2027 and 2028.
The additional aircraft are expected to provide greater capacity for the group while supporting the replacement of older jets and strengthening its international network.
The expansion forms part of Tata Group’s broader efforts to rebuild Air India as a more competitive international airline following its acquisition of the carrier.
Focus on Passenger Experience
Beyond fleet changes, Air India has been investing heavily in its overall customer experience, including upgraded cabins, food and beverage services, Maharaja Club lounges, loyalty offerings, inflight entertainment and onboard Wi-Fi.
The airline has indicated that customer sentiment has improved as more refurbished aircraft and new-generation jets have entered service, giving passengers access to more modern cabins and onboard facilities.
The carrier is also seeking to create a more consistent product across its fleet as it combines refurbished legacy aircraft with newly delivered Boeing and Airbus models.
Maintenance Work Boosts Reliability
Airspace restrictions and temporary network curtailments have also provided Air India with opportunities to bring forward maintenance and engineering work on its fleet.
During periods when parts of its network were temporarily reduced, the airline advanced three major widebody maintenance checks and established six additional rejuvenation lines to address aircraft defects.
Air India has also introduced an additional Boeing production line to increase the pace at which its aircraft undergo retrofit work.
The measures have contributed to an improvement in the technical reliability of its widebody fleet. Technical dispatch reliability has reportedly reached 97.4%, according to The Hindu Business Line.
The improvements underline the airline’s attempt to pursue fleet growth while simultaneously addressing reliability, maintenance and customer-service issues that are critical to its long-term transformation.
Staff Pay Review Also Planned
As part of its broader employee-focused initiatives, Air India is also set to implement annual salary increments for its workforce.
The increases, covering employees including ground staff and cabin crew, are scheduled to take effect from October 1, 2026. Revised remuneration for pilots is also expected to begin on the same date.
With its fleet modernisation, new aircraft deliveries, cabin upgrades and reliability initiatives progressing simultaneously, Air India is positioning the next two years as a major phase in its transformation under Tata Group ownership.