• By Vaamanaa Sethi
  • Tue, 26 Sep 2023 05:01 PM (IST)
  • Source:JND

Air India is likely to invest $200 million on pilot and cabin crew training facilities as the airline is expanding its fleet and network, according to a report by The Hindu Businessline (HBL).

“On the simulator side the investment is of $200 million to build capabilities not just for Air India but for others,” Campbell Wilson, Air India's Managing Director and CEO, was quoted as saying by HBL.

Also read: Food Delivery Platform Foodpanda Conducts Fresh Round Of Job Cuts; Details Here

In an interview with Times Of India, Wilson further shed light on the proposed training academy. He said, “ The lease agreement for our new training academy, which will be spread over 6 lakh square feet in Gurugram, has been finalised. It will cater to training requirements of pilots, cabin crew, engineers, and staff from airport operations, security, commercial, and more. It will have a dedicated safety centre through which every single Air Indian, present and future, will have to pass. We are progressing very well with the two JVs for simulator training. Over the next couple of years, we'll spend more than $200 million.”

The airline also placed a large order for 470 planes, spending around $70 billion in a deal with Airbus and Boeing, as a part of its expansion plans. It is also leasing planes to add new destinations to its network.

In pursuit of its expansion efforts, the airline is allocating resources towards the development of training facilities aimed at enhancing the skills of cabin crew, engineers, and ground staff. To achieve this goal, AI will collaborate with aircraft manufacturers Airbus and Boeing.

The former public carrier, now under the Tata Group's umbrella, has entered into lease agreements for 11 wide-body aircraft. As of now, six of these have been integrated into its fleet, with the remaining five scheduled for inclusion by March 2024. Additionally, the airline has expanded its fleet by leasing 25 A320 NEO planes, with four of them already in service and the remaining 21 expected to join the fleet by March 2024.

“The wide-bodies will be used to expand our network internationally as well as add frequencies on the international segment. The A350 will operate domestically during the first quarter of next year and then operate on international routes," Wilson added.

Air India-Vistara Merger

The Competition Commission of India (CCI) has given its approval for the merger of Vistara with Air India, and the airline is currently awaiting clearance from international competition regulators, Wilson said.

Also read: Tata Steel Share Price Surges 2% After Moody’s Upgrades Its Ratings

Air India intends to gradually discontinue the Vistara brand once Air India's services match or surpass the quality and offerings provided by Vistara, the HBL report further added.