Air India clears most interim compensation claims after crash, expect normalized aircraft deliveries in 2026: CEO Wilson
Air India paid ₹The airline’s CEO said provisional compensation of Rs 60 crore has been paid to 230 of the 248 people killed in the June 12 accident.
Chief executive officer (CEO) Campbell Wilson’s compensation update comes as the Tata-backed carrier has had a tumultuous year marked by accidents and significant operational challenges.
In addition, aid was provided to the family members of 70 people. ₹1 crore per person through the Tata Group, which has set up a foundation to help people killed in the country’s worst civil air crash in over a decade. Families of 50 people who died in the accident were treated ₹1 crore each, according to the airline.
“We continue to reach out to the families of those affected… however long our commitment to those who have suffered loss continues,” Wilson said in a meeting with the media in Delhi on Monday.
Compensation Air India comes at a time when the Tata-backed airline is trying to recover from a tough year.
Wilson acknowledged that 2025 is “an extraordinarily difficult year.” Challenges include the crash in June and the financial impact of a May airspace closure by a neighboring country that forced Air India to fly circuitous routes over the Arabian Sea. He said last month that the closure could cost the airline ₹If it takes a year, 4,000 crore is lost.
Fleet modernization
The carrier’s refurbishment program, which involves refurbishing existing aircraft to install new seats and entertainment systems, has been delayed due to supply constraints, Wilson said.
Air India expects the fleet modernization program to be completed by 2028 instead of the previously stated 2027. He described the supply chain as “constrained” affecting seats, cabin components and aircraft. aircraft availability across the industry and Air India.
“There’s a reason why this is a five-year transformation program, because it can’t be done overnight and it never has been done. So we have to stay focused on the goal and work on it,” Wilson said.
“Ultimately this means we expect all older aircraft to be refitted within the five-year conversion period. It will probably have a bit of a long tail with a few of the triple sevens moving into year six,” he added.
Air India, which carries out one of the world’s largest Commercial aircraft interior renovation programs also planned to retire 17 older narrow-body aircraft. However, as delivery delays continue, these will be reintroduced into the fleet.
The wide-body conversion proved more complex. The first two 787-8s, currently based in Victorville, Calif., “have completely new interiors. They should be back in service in February 2026. We’ll be delivering two to three aircraft every month after that,” Wilson said. Mint.
The airline will acquire 26-30 new jets in 2026 (and one in December 2025); these include six wide-body aircraft and 20 narrow-body aircraft for long-haul flights.
After acquiring Air India in 2022, the Tatas outlined a $400 million program to modernize its existing fleet by early 2027. This replenishment program is in addition to the order placed by the carrier Boeing and Airbus will purchase 570 new aircraft.
fund infusion
The current fleet size, including Air India Express, is 297.
“Therefore, the airline’s capacity will remain relatively stable in 2026,” he said.
Wilson responded negatively to a question about whether he would seek funding from supporters.
Privately held Air India reported revenue of: ₹78,636 crore last year, an increase of 15%. But losses widened ₹7,356 crore ₹10,859 crore.
According to Gagan Dixit, an analyst at Elara Capital, Indian carriers such as Air India are already feeling supply-side constraints. “There will be some pressure on Air India’s numbers until aircraft delivery schedules return to normal. There may be some increase in non-fuel costs for Air India compared to market leader IndiGo. It will also have to realign routes as new airports open and it continues to face new aircraft delivery delays.”
