Air India CEO Campbell Wilson Discusses Global Supply Chain Improvements Amid Ongoing Challenges

Air India is navigating significant supply chain challenges, impacting its ambitious transformation plans. CEO Campbell Wilson noted that while the global supply chain is improving, constraints persist in areas like engines and components. These issues have delayed Air India's retrofit programme for older wide-body aircraft and the delivery of new planes.

Representative image

Wilson highlighted that the airline's seat upgrade programme faces unique difficulties. "I guess it's more painful for us because the product that we are upgrading from is a much older product, and the seats are obsolete, and the spare parts are difficult to procure or manufacture," he explained. The transition from outdated to modern products presents a substantial challenge.

Supply Chain Struggles Impacting Airlines

The supply chain issues are not unique to Air India but affect all airlines undergoing seat upgrades. Wilson emphasised that Air India's degree of upgradation is significant, particularly for its legacy Boeing 787 and 777 aircraft. The airline had initially appointed an Original Equipment Manufacturer (OEM) to produce premium seats.

However, complications arose when the OEM withdrew due to resource overcommitment. "We got right to the point where we had designed the product, and we were doing the final inspections of the prototypes. And that OEM told us they couldn't any longer continue the programme because they'd just overcommitted their resources and we simply couldn't produce. And so, they walked away," Wilson said.

Challenges in Aircraft Upgrades

This unexpected setback forced Air India to restart the process with a new supplier, costing them two years. Wilson shared these insights during a media interaction at the opening of Air India's new lounge at Delhi airport. Despite these hurdles, Wilson remains optimistic about gradual improvements in supply chain conditions.

He acknowledged that while progress is being made, challenges remain in securing engines and other components. "It is something that affects all airlines and affects the manufacturers as well...progressively getting better," he stated.

Financial Implications on Global Airlines

A study by IATA and consulting firm Oliver Wyman predicts that supply chain challenges will cost the global airline industry over USD 11 billion by October 2025. This highlights the widespread impact of these issues on airlines worldwide.

Air India's experience underscores the broader struggles faced by airlines in upgrading aircraft amidst tight supply chains. The airline's efforts to modernise its fleet continue despite these obstacles, reflecting a commitment to enhancing passenger experience.

With inputs from PTI