NEW DELHI : Air India, until recently tied to an antiquated manual pricing system when setting airfares, is shifting to algorithm-based software long used by rivals to help it squeeze out more revenue from each flight.
Air India is not only reworking every aspect of operations - from systems to supply chains - but integrating four Tata-related airlines, with Air India due to merge with Vistara while low-cost Air India Express and AirAsia India also converge. "Complexity is the curse of airlines," said Keith McMullan, partner at UK-based consultancy Aviation Strategy, who has experience in the Indian market.
For instance, it is working with Tata Technologies to build locally some plastic components for economy-class seats instead of waiting for suppliers to deliver the obsolete parts. "In a startup, you just do what you need to do to get going and then you refine along the way," he told Reuters, drawing from this experience of being the founding chief of Singapore Airlines' budget carrier Scoot.Analysts say Wilson's staggered turnaround plans will be severely tested as Air India executes the twin mergers.