Dressing up the Maharaja: Premium Economy takes centre stage in Air India facelift

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Air India, a Tata enterprise, has said it is committing $400 million to fully refurbish existing widebody aircraft cabin interiors. The widebody aircraft interiors have been facing maximum flak online for the airline with passengers complaining of broken seats and in-flight entertainment (IFE).

The refurbishment will involve the latest-generation seats and IFE systems in all cabin classes and also see a change in the Layout Of Passenger Amenities (LOPA) for both types to include the Premium Economy cabin.

Also Read: Air India draws up $400-million revamp plan for cabin interiors of wide body fleet

Air India would thus join the league of global players which have been focusing on Premium Economy in the recent past. The Dreamliners of Vistara, which will merge with Air India by March 2024, also have a three class configuration, which includes Premium Economy.

The fleet that will undergo refurbishment comprises 27 Dreamliners and 13 B777s. The airlines’ B777 fleet comprises 13 B777-300ER and 3 B777-200LRs, which the Tata group inherited, and one additional B777-200LR, which has joined in from Delta recently.

Four more B777-200LRs are expected to join soon, which will be in three class configurations comprising Business, Premium Economy and Economy while it recently announced that six B777-300ER would also join in the first half of 2023. These six aircraft will be in four class configuration. This is an indication that the airline will likely continue its plan of sale of three B777-200LRs in its fleet.

Air India will continue to have the First Class cabin on the B777s. The airline is engaging with JPA Design and Trendworks, a London-based product design company, which counts the Tata-owned Taj Hotels among its customers.

The refurbishment

The refurbishment will see a complete overhaul of existing cabin interiors with new seats and new IFE across all classes. The airline has said that it wants to provide a modern, comfortable and technologically advanced cabin to facilitate a travel experience that is comparable with the best in the world.

World over, supply chains are struggling to come back to pre-Covid levels and this includes seats. Airlines are either forced to operate with non-standard seats, like in the case of Akasa Air, or delay aircraft deliveries in some cases.

Since the refurbishment would lead to the aircraft being grounded for a significant period, for Air India, which is in the middle of an expansion, finding the right gaps to ensure schedule compliance and slots for maintenance at MROs, and timing it with seat delivery is a challenge. The first refurbished aircraft is expected to enter service in mid-2024, which is after the merger of Vistara with Air India.

A melee of fleet

Refurbishment is a lengthy process and until that happens the Air India widebody fleet will be a mix like never before. The 27 B787-8 Dreamliners will be in two classes comprising 18 Business and 238 Economy class seats. These will be complemented by the three B787-9 from Vistara, which has 30 Business, 21 Premium Economy and 248 Economy class seats.

On the B777 front, until the three B777-200LR of erstwhile Air India are part of the fleet, it would comprise 8 First, 35 Business and 195 Economy class seats. They will be complemented with 5 former Delta B777-200LR aircraft, which are in three class configurations of Business, Premium Economy and Economy. On the B777-300ER front, the 13 aircraft with 4 First, 35 Business and 303 Economy class seats will continue even as six more are inducted in four class configuration soon.

Focus on Premium Economy

Singapore Airlines, the former organisation of Air India CEO Campbell Wilson and also an equity partner in Vistara and then Air India, has been operating Premium Economy class for a while. Vistara was the pioneer of the Premium Economy in India. From Air France to Virgin Atlantic, CXOs at top airlines which operate the Premium Economy have made statements on the section being the most profitable real estate on the plane.

Recently, Emirates joined the bandwagon and decided to go ahead with a multi-billion dollar refurbishment to include Premium Economy. Air India, too, is jumping on the bandwagon now. The airline could standardise four suites in First across the B777 fleet along with 24 Premium Economy seats with a variable Business and Economy class based on the sub-type of B777.

Also Read: Air India leases 12 more aircraft to boost domestic, international operations

Tail Note

Air India is taking all the right steps, but none of them is a quick fix and passengers are likely to continue complaining about broken seats and IFE unless there is an immediate fix in the offing. While the airline may have an intention of doing it, the lack of spares for the older seats and supply chain issues will continue to be a challenge.

It will be interesting to see if the airline opts for a denser configuration with 10 abreast economy class, something which is not rare on the B777-300ER. This will possibly reduce the costs further for the airline on a per-seat basis, even as it squeezes another class of service. These dense aircraft could do well on routes to London, which has bilateral constraints as well as slot constraints.

The seats and IFE could well be the same when it would look for the newer aircraft in the second half of this decade as part of the anticipated order. But the investments are an indication that the B777s are not being phased out very soon but at the same time, the three B777-200LRs days with the airline are limited.