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Air India brings maintenance operations in-house with new MRO setup.
Air India has announced plans to establish its own maintenance, repair, and overhaul (MRO) facility, marking a significant shift in its maintenance strategy. Historically, the airline has relied on third-party providers for its maintenance needs. However, with the establishment of its own MRO, Air India aims to reduce its dependence on external vendors and bring some of these critical functions in-house.
The decision to set up an MRO facility is part of Air India’s broader efforts to revamp its operations and improve efficiency. By having its own maintenance facility, the airline will be able to exert greater control over the maintenance process, reduce downtime, and potentially lower costs. The MRO will be equipped to handle a range of maintenance tasks, from routine checks to more complex overhauls.
This move is also expected to create new job opportunities and help develop the Indian aviation industry’s maintenance capabilities. Air India’s MRO will not only serve the airline’s own fleet but also potentially offer maintenance services to other carriers, both domestically and internationally. This could help establish India as a hub for MRO services in the region, attracting business from other airlines and contributing to the country’s economic growth.
The establishment of the MRO facility is a key part of Air India’s transformation plan under its new ownership, the Tata Group. The airline has been undergoing significant changes since its privatization, including fleet expansion, network optimization, and service upgrades. The in-house MRO capability is seen as a crucial element in supporting these initiatives, enabling Air India to maintain its aircraft more efficiently and effectively.
While the exact timeline for the MRO’s operational launch has not been disclosed, Air India has indicated that it is working diligently to bring the facility online as soon as possible. The airline will need to ensure that its MRO meets all relevant regulatory and safety standards, which could involve obtaining necessary certifications and complying with international aviation guidelines.
In conclusion, Air India’s decision to set up its own MRO facility represents a significant development in the airline’s strategy to enhance its maintenance capabilities and reduce dependence on external providers. This move is expected to have positive implications for the airline’s operations, the Indian aviation industry, and the broader economy. As Air India continues to implement its transformation plan, the establishment of an in-house MRO will play a critical role in supporting the airline’s growth and development aspirations.
Indian carriers demand equal treatment as European authorities limit flight slots.
Indian airlines, including IndiGo and Air India, are facing significant hurdles in accessing slots at major airports such as Amsterdam’s Schiphol and London’s Heathrow. Despite having international flying rights granted to them by the government, these airlines are struggling to fully utilize their allocated slots. The issue has prompted Indian airlines to call for retaliatory action from authorities to ensure a level playing field.
The problem is particularly pronounced at Schiphol Airport, where Dutch flag carrier KLM operates 21 flights per week to India, while Indian carriers are limited to just 10 flights. IndiGo’s recent launch of a Mumbai-Amsterdam flight has been hindered by uncertainty over slot allocation for the winter season. The airport’s decision to cap annual flight movements at 478,000 starting in November has further reduced the probability of new slots being allocated to Indian airlines.
Similarly, Indian carriers are facing challenges in accessing slots at London’s Heathrow Airport. Despite a revised air service agreement in 2023, which increased the number of flights allowed from Indian cities to Heathrow from 56 to 70 per week, Indian airlines are struggling to secure new slots. Air India operates 31 weekly flights to Heathrow, while IndiGo has announced plans to launch new flights from October. However, the high cost of leasing or buying slots from other airlines is a significant barrier to expansion.
The Indian government is engaging with delegations from the Netherlands and the UK to resolve the issue and provide a level playing field for Indian airlines. The airlines have requested government intervention to secure new slots, which is essential for their aggressive international expansion plans. The issue has significant implications for the growth of India’s aviation sector, and the government must take swift action to address the concerns of Indian airlines.
The airports’ slot allocation policies and the high cost of leasing or buying slots are major hurdles for Indian airlines. The Dutch government’s decision to cap flight movements at Schiphol Airport has added to the challenges faced by Indian carriers. The Indian government must work with its international counterparts to resolve these issues and ensure that Indian airlines have equal access to slots at major airports. Only then can Indian airlines fully utilize their international flying rights and expand their operations to meet growing demand.
Air India’s Former Subsidiaries to Hit the Road: Government Plans Showcase Roadshows in Europe and SingaporeLet me know if you’d like me to make any further changes!
The Indian government is planning to sell its stakes in Air India’s subsidiaries, including Air India Air Transport Services (AIATS), Airline Allied Services (AAS) or Alliance Air, AI Airport Services (AIAS), Air India Engineering Services Limited (AIESL), and Hotel Corporation of India (HCI), to meet its fiscal divestment targets for FY26. The government aims to invoke Expressions of Interest (EoIs) by August 2025 and complete the sale by the end of the year.
The subsidiaries, currently held by Air India Assets Holding Limited (AIAHL), are Air India’s non-core assets, debt, and subsidiaries earmarked for sale. The government had earlier planned to divest these entities in 2017, but the process has been delayed, and it now aims to speed up the process.
The government has already conducted roadshows for AIESL, the largest maintenance, repair, and overhaul (MRO) company, and attracted interest from international investors. The upcoming roadshows in Singapore and Europe aim to attract more investors and participate in the stake sale.
The subsidiaries up for sale hold strategic importance in India’s aviation ecosystem, providing services such as MRO, ground handling, airport operations, and hotel management. The government has announced the recruitment of a CEO for Hotel Corporation of India to strengthen its leadership and improve operational efficiency ahead of the sale.
The government’s approach to divestment has shifted from aggressive targets to a more measured approach, focusing on asset sales rather than privatization. The Department of Investment and Public Asset Management (DIPAM) has facilitated IPOs and stake sales in public sector enterprises, raising Rs 13,728 crore in 2024.
Potential bidders, including global aviation firms, have expressed interest in acquiring AIESL. The government’s sale of Air India’s subsidiaries is seen as a crucial step in aviation sector reforms, and the process will be crucial in shaping the future of these key aviation assets.
Southwest is the latest airline to adopt new baggage policies, joining a growing list of carriers, including American, Delta, United, JetBlue, Alaska, Spirit, Emirates, Qatar, Saudia, Air India, and IndiGo, in simplifying the travel process for passengers.
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Many major airlines, including Southwest, American, Delta, United, JetBlue, Alaska, Spirit, Emirates, Qatar, Saudia, Air India, and IndiGo, are adopting new baggage policies. These changes aim to simplify and standardize baggage fees and policies, making it easier for travelers to plan and budget their trips.
One significant change is the gradual elimination of free checked bags for domestic flights. Most airlines are introducing new fees for checked bags, with prices ranging from $20 to $40 per bag, depending on the airline and the travel class. Some airlines, like Spirit, are already charging as much as $100 for a single checked bag.
Another trend is the introduction of tiered baggage pricing, where fees vary based on the traveler’s status level, loyalty program, or class of service. For example, premium cabin passengers or loyalty program members may receive more free checked bags or lower fees.
Additionally, some airlines are adopting new baggage restrictions, such as size limits for carry-on bags or increased weight limits for checked bags. Travelers should check their airline’s website or consult with the airline before packing to ensure compliance with these new restrictions.
To make amends for the changes, many airlines are also introducing new optional bag services, such as priority boarding, extra luggage storage, or personalized baggage handling. These add-ons can range from $10 to $100, depending on the airline and the service.
To navigate these changes, travelers should:
1. Check the airline’s baggage policy before booking their ticket
2. Verify the number and size of bags allowed
3. Learn about additional fees and services offered
4. Plan and pack accordingly to stay within budget
5. Consider purchasing travel insurance to cover unexpected expenses
By understanding these changes, travelers can better prepare for their journey and avoid unexpected surprises. As the airline industry continues to evolve, it is essential for travelers to stay informed to make the most of their travel experience.
Riyadh Air Aims to Forge Strategic Partnerships with Air India and IndiGo to Expand its Global Reach
Riyadh Air, a new Saudi Arabian carrier set to launch in 2025, is seeking partnerships with Indian airlines such as Air India and IndiGo to enhance its presence in the fast-growing Indian aviation market. The carrier plans to operate a fleet of 60 narrow-body A321 neos and 72 wide-body B787-9 Dreamliners, aiming to connect Saudi Arabia to over 100 global destinations by 2030.
Riyadh Air’s CEO, Tony Douglas, emphasized the importance of the Indian subcontinent, stating that it represents a “super important” market for the airline. The carrier is also in discussions to acquire additional wide-body aircraft, including Boeing 777Xs and A350-1000s.
In addition to its expansion strategy, Riyadh Air has a unique three-pillar approach to differentiate itself in the competitive global aviation landscape. The first pillar focuses on exceptional customer service, the second on environmental sustainability, and the third on leveraging Saudi Arabia’s unique demographic advantage as a “true digital native” market.
The airline has already made a significant order with Boeing, purchasing 78 aircraft with options for 43 additional planes. It has also partnered with Delta Air Lines to offer flight services between the US and Saudi Arabia.
Riyadh Air’s vision for 2030 includes becoming a global aviation hub, supported by Saudi Arabia’s economic diversification strategy. The kingdom aims to attract 100 million annual visitors by 2030, strengthening its tourism sector and position in global air travel markets. The country is investing in multiple sectors, including tourism, entertainment, technology, and renewable energy, and developing new infrastructure projects such as Neom City, the Red Sea Project, and Qiddiya.