Air India has successfully completed the retrofit of its Airbus A320neo fleet, a key phase in its ongoing $400 million fleet modernization initiative. The last of 27 retrofitted aircraft has returned to service, marking a significant milestone in the airline's efforts to upgrade its fleet with new interior configurations and livery.
The retrofit began over a year ago, with the initial goal to upgrade three to four aircraft per month. The project faced supply chain challenges but ultimately concluded with all targeted aircraft renewed. Moving forward, Air India plans to retrofit its older A321s, along with widebody aircraft such as Boeing 787s and 777s, with full cabin upgrades expected to finish by mid and late 2027 respectively.
Broader Industry Impact
This extensive retrofit demonstrates India’s growing MRO capacity, indicating a shift towards more domestic maintenance, repair, and overhaul activities. Supported by government initiatives and schemes like the PLI, these projects reflect an increasing capacity for comprehensive aircraft modifications domestically, enabling Indian carriers to modernize efficiently while fostering industry growth.
Having integrated newly delivered and Vistara-absorbed aircraft into its fleet, Air India now operates 104 A320-family aircraft, all featuring updated cabins. The successful completion of this program enhances the airline's passenger experience and boosts its competitive positioning in the Indian market.

