Air India CEO Predicts Aircraft Shortage Will Last Four to Five Years
Air India CEO Campbell Wilson warned on Tuesday that the global aircraft shortage currently impacting airline growth will persist for four to five years. The ongoing supply chain issues have hampered Boeing and Airbus production, affecting the delivery of new jets.
Speaking at an event hosted by Skift, Wilson highlighted critical bottlenecks in the supply of narrowbody jet engines, business and first-class seats, and components of aircraft fuselages. These delays are complicating Air India’s turnaround strategy, which has been underway since the Tata Group took control two years ago.
Aircraft delivery delays have forced Air India to operate older jets longer than planned, increasing maintenance costs and slowing its modernization efforts. Wilson acknowledged that the airline, like other carriers, is at the mercy of circumstances beyond its control. He added, “If you are capacity constrained, you need to be more ruthless in where you deploy aircraft to maximize returns.”
In 2023, Air India placed a multi-billion-dollar order for 470 jets from Boeing and Airbus, including the highly anticipated 777X and 737 MAX aircraft. However, delivery uncertainties persist, especially for the 777X, with Wilson unsure about the timeline.
The CEO also mentioned Boeing’s production limits on 737 MAX aircraft, noting the company cannot produce more than 38 per month due to FAA restrictions.
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Sources: AirGuide Business, airguide.info, reuters.com