15 Aug 2025

#3 August 2025: India Aviation Newsletter

Air India Commences Retrofit Programme for Widebody Fleet

Air India has begun its widebody retrofit programme for its legacy Boeing 787-8 fleet, with the first of 26 aircraft (VT-ANT) having flown to a Boeing facility in Victorville, California, in July 2025. A second aircraft is scheduled for departure to the same facility in October 2025, with both aircraft expected to return to service by December 2025.

The retrofit programme will run on a steady schedule through mid-2027 and includes the introduction of brand-new interiors featuring a three-class configuration: Business Class, Premium Economy, and Economy. Enhancements include new seats across all cabins, advanced inflight entertainment systems, refreshed carpeting, curtains, upholstery, lavatories, galleys, and more—all aligned with Air India’s upgraded product and customer experience standards.

Additionally, Air India will begin retrofitting 13 legacy Boeing 777-300ERs in early 2027, aiming for completion by October 2028. The timeline has been revised due to supply chain delays.

Akasa Air Celebrates Record Growth

Akasa Air marks three years since its first flight between Mumbai and Ahmedabad on 7 August 2022. In just 36 months, the airline has flown over 19 million passengers, with a remarkable 8 million carried in the last year alone. Akasa continues to maintain industry-leading load factors of over 87%.

Vinay Dube, Founder and CEO, stated:
“Akasa was born out of a belief that building a great airline requires more than ambition; it requires discipline, purpose, and heart. In just three years, we have proven that it is possible to scale rapidly, deliver consistently, and stay deeply human in how we operate. We are not just growing fast—we are growing right, marked by our steadfast commitment to world-class safety, deep investment in our people, and an obsession with every detail of our customer experience.”

“With over 19 million passengers flown, an engaged workforce of over 4,700 Akasians, and a consistent record of operational excellence, Akasa is poised to become a generational institution in global aviation and remains firmly anchored to its long-term vision of being among the top 30 airlines globally by the end of this decade.”

Bengaluru Airport City Limited and Prestige Group Collaborate on Convention & Exhibition Centre

Bengaluru Airport City Limited (BACL) has partnered with Prestige Group to develop a next-generation Convention & Exhibition Centre (CEC) within the upcoming Bengaluru Airport City precinct.

The integrated development will anchor a marquee mixed-use district and include:

• A world-class 8,000-seat Convention and Exhibition Centre

• A state-of-the-art performing arts theatre

• A luxury hotel

• Grade A office spaces

• Curated F&B and global dining experiences

Mr. Rao Munukutla, Executive Director & CEO of BACL, said:
“This partnership with Prestige Group underscores our commitment to creating world-class social infrastructure that not only supports the region’s economic agenda but also elevates India’s stature in the global MICE landscape. The Convention and Exhibition Centre will serve as a powerful enabler of international engagement and showcase Bengaluru as a global hub for business, hospitality, and culture.”

Acumen’s Take

On Air India’s Retrofit Programme

Air India’s widebody retrofit initiative is a significant step towards product modernisation and global competitiveness. By introducing a consistent three-class layout with upgraded inflight experiences, the airline is aligning with international standards expected by premium and long-haul travellers. For aircraft asset managers, this points to an uptick in cabin modification projects through 2027–2028, which may impact MRO availability and secondary market aircraft valuation during refurbishment cycles.

On Akasa Air’s 3-Year Growth Milestone

Akasa Air’s rapid ascent in just three years underlines how disciplined scaling and brand-driven culture can generate long-term strategic value. With nearly 20 million passengers carried and operational consistency across key metrics, Akasa is positioning itself as a formidable mid-size carrier. This type of growth typically accelerates fleet expansion and network diversification—two factors Acumen monitors closely for their impact on narrowbody lease demand in South Asia.

On Bengaluru Airport City’s CEC Development

The collaboration between BACL and Prestige Group to develop a world-class Convention & Exhibition Centre signals a broader trend of aviation-linked urban infrastructure development. For the MICE sector, this integrated facility strengthens Bengaluru’s global business appeal. From an aviation perspective, such developments boost passenger traffic, enhance non-aeronautical revenues, and drive demand for both regional and long-haul connectivity—offering strategic uplift for airport-city ecosystems.

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