Airlines

Air India to introduce premium economy class in some international flights from December 2022

On some long-haul flights, Air India will soon provide premium economy class

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On some long-haul flights, Air India will soon provide premium economy class. Tata Airlines will start offering a premium economy class in December 2022, which is the next month. A long-term revival strategy is being implemented by Air India, according to CEO and MD Campbell Wilson, who made the announcement at a JRD Tata Memorial Trust event.

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Over the next five years, the airline hopes to develop its wide-body and narrow-body fleets as well as its global network. He added that both on domestic and international routes, the airline would raise its market share to at least 30%.

“The immediate measures have been to replace the carpets, curtains, seat cushions, and coverings. As quickly as supply chains will permit, to repair broken seats and in-flight entertainment systems. And in cases when parts are no longer on the market, to collaborate with companies like Tata Technologies to design and produce parts on our own,” Wilson said.

#NewsAlert | "Embarked on a bold chapter to make Air India a world-class airline," says MD & CEO of Air India, Campbell Wilson @anujosh_aj @airindiain @DGCAIndia #CampbellWilson #AirIndia #Aviation pic.twitter.com/4u30vxm4gj

— ET NOW (@ETNOWlive) November 19, 2022

The domestic inflight menu has recently undergone a major revamp, he added. Wilson claims that the Tata-owned airline has repaired about 20 aircraft that were grounded for years owing to a lack of funds and parts. This has necessitated purchasing more than 30,000 parts that had been cannibalized over the years to keep another aircraft flying, excluding cabin interiors.

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Wilson revealed that Air India will increase its wide-body and narrow-body fleet over the next five years, emphasizing that they have started a brave new chapter in their efforts to transform the airline into a top-tier carrier. He said that the airline has finalized leases for 30 additional aircraft that will be delivered over the course of the next 12 months, beginning next week, in addition to restoring long-grounded aircraft, with more in the final stages of negotiation.

Beyond these immediate additions, we are in extensive talks with Boeing, Airbus, and engine suppliers for a historic order of the newest generation aircraft that will fuel Air India’s medium- and long-term expansion. The investment will be considerable, at the risk of drastically understating the case, he said. According to the CEO, 2023 should be an exciting year for Air India.

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Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.