12 Feb 2026
#2 February 2026: India Aviation Newsletter
Air India Converts 15 Airbus A321neo Orders to A321XLR
Air India announced the conversion of 15 Airbus A321neo aircraft to the longer-range A321XLR variant, with deliveries expected between 2029 and 2030. The announcement was made on the sidelines of Wings India 2026.
The conversion forms part of Air India’s broader single-aisle orderbook, which includes 210 A321neo aircraft, while 90 A320neo aircraft remain unchanged. CEO Campbell Wilson stated that the move aligns with the airline’s long-term fleet strategy, positioning it to meet evolving travel demand with greater range flexibility and operational versatility.
India Clears Three New Airlines to Boost Competition
India’s aviation regulator has granted clearance to three new domestic carriers – Shankh Air, Al Hind Air and FlyExpress – signalling a policy push to expand capacity and strengthen market resilience.
Shankh Air intends to operate regional services from northern India, Al Hind Air will focus on short-haul turboprop operations from Kochi, and FlyExpress plans a low-cost passenger and cargo model based in Telangana. While further regulatory approvals are required before launch, the move reflects efforts to stimulate competition and reduce reliance on dominant incumbents.
SpiceJet Strengthens Fleet with Addition of Two Boeing 737 Aircraft
SpiceJet inducted two Boeing 737 aircraft into its fleet, both of which have entered commercial service following regulatory approvals. The aircraft commenced operations in late November 2025 and are currently deployed on routes including Delhi–Bangkok, Ahmedabad–Dubai and Ahmedabad–Kolkata.
Chief Business Officer Debojo Maharshi stated that the additions form part of the airline’s calibrated capacity expansion strategy aimed at strengthening network resilience across domestic and international markets.
Acumen’s Take
On Air India’s A321XLR Conversion
The A321XLR provides Air India with long-range narrowbody capability, opening new medium-haul international markets while maintaining cost efficiency. This signals a disciplined, forward-looking fleet strategy.
On India’s New Airline Entrants
Regulatory clearance for three new carriers reflects India’s continued push toward regional connectivity and competitive diversification. Market entry, however, will hinge on capital strength and execution capability.
On SpiceJet’s Fleet Additions
SpiceJet’s incremental fleet growth indicates measured capacity rebuilding. Targeted route deployment suggests a focus on revenue-generating international sectors alongside core domestic operations.
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