Air India Upgrades 104 A320neo Aircraft Fleet

Air India has completed the retrofit of its entire legacy A320neo fleet, bringing its A320 Family total to 104 aircraft with modern three-class cabins and upgraded interiors—signalling a major leap in its fleet modernisation strategy.

Introduction

For travel trade professionals—including B2B agents, airline consolidators and corporate travel planners—the latest fleet upgrade announcement by Air India presents both an opportunity and a talking point. With the airline now operating over 100 of its narrow-body A320 Family aircraft in upgraded cabin condition, it has significant implications for route product, passenger experience and airline partnerships.

Fleet Modernisation: What’s Changed

Scope of the Upgrade

Air India’s retrofit programme covers:

• The full set of 27 legacy A320neo aircraft, refurbished under a USD $400 million initiative. 

• Along with 14 newly-delivered A320neo aircraft and units absorbed via the merger with Vistara, the total A320 Family fleet now featuring new or upgraded cabin interiors reaches 104 aircraft

• These aircraft now operate across 3,024 weekly flights spanning 82 domestic and short-haul international routes. 

Cabin & Product Enhancements

Key upgrades include:

• A consistent three-class configuration on these narrow-bodies (Business, Premium Economy, Economy) — a significant shift for the carrier.

• On the retrofit batch: installation of 216 Business Class seats, 648 Premium Economy seats, and 3,564 Economy seats.

• Material upgrades: over 450 metres of premium leather, 15,000 metres of fabric, 5,000 m² of carpet, and repainting in new livery using 8,000 kg of paint.

• Every seat now fitted with USB-A and USB-C ports and access to the “Vista Stream” IFE service (circa 900 hours of content) — raising the onboard experience factor.
  
  

Why This Matters to Travel Trade & Corporate Planners

Enhanced Market Differentiation

For B2B travel agents and corporate planners dealing with high-yield segments (premium economy, short-haul international, corporate domestic), the upgraded cabins become a product differentiator. Being able to pitch flights on “new-look” narrow-bodies operated by Air India offers a fresh selling point.

Route and Network Implications

Key domestic and regional routes (such as Delhi-Mumbai, Delhi-Bengaluru, Mumbai-Hyderabad) are now largely served by the upgraded A320 Family fleet. This means agents can confidently propose high-quality narrow-body products on busy trunk routes, aligning with corporate clients who expect consistent comfort.
Short-haul international corridors (e.g., Bangkok, Phuket, Kuala Lumpur, Malé, Riyadh, Jeddah) are also part of the network upgrade.

Corporate Travel & Incentive Implications

• With Premium Economy now broadly available in narrow-bodys on Air India, planners can offer a stepped-up product at lower cost than wide-body Business Class for short-haul incentives.

• The uniform cabin across many aircraft simplifies group-booking logistics (no need to worry about older aircraft variants with inconsistent interiors).

• For airline consolidators, the investment signals Air India’s commitment to product consistency—important when selling corporate contracts or group fares.

What’s Next: Wider-Body Retrofit and Fleet Roadmap

While the A320 Family retrofit marks a significant milestone, broader fleet changes are underway:

• From 2026 the airline will begin retrofitting 13 legacy A321 aircraft, integrating them with re-livery and makeover.

• The wide-body retrofit programme for the Boeing 787-8 fleet (26 aircraft) is already underway, with completion targeted by mid-2027.

• The Boeing 777-300ER retrofit will follow early in 2027, targeting completion by October 2028, though supply-chain delays are noted.

Implications & Action Points for Travel Trade

• Update product sheets and contracts: Reflect in your agency offerings the cabin upgrade status of Air India’s narrow-body fleet.

• Highlight premium narrow-body product on marketing collateral: Use the three-class cabin upgrade for short-haul incentive travel, corporate bookings and regional group movements.

• Leverage stability and fleet uniformity: With 104 A320 family aircraft upgraded, clients can expect consistent onboard experience across key routes—reduce product risk.

• Monitor wide-body rebuild timeline: For long-haul corporate contracts or flights relying on Air India wide-body cabins, note the retrofit schedule into 2027-28 and include this in capacity/risk modelling.

• Position differentiation vs competitors: Many domestic carriers still operate older interiors—Air India’s upgrade affords you a competitive angle when pitching to premium-segment clients.

Conclusion / Take-away

For B2B travel agents, airlines’ consolidators and corporate travel planners, the completion of Air India’s A320 Family cabin upgrade is a meaningful milestone. It elevates the narrow-body product, simplifies operational logistics and enhances value-propositions for premium, short-haul and regional travel segments. As Air India advances the next phases of its wider-body retrofit, keeping close to the timeline and product rollout will be key to shaping robust travel-trade offers and delivering standout experiences for your clients.

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