Alerts Sign-up
Air India is preparing to shift some of its aircraft maintenance operations in-house, moving away from state-owned provider AI Engineering Services Ltd. (AIESL). The airline will rely on shareholder Singapore Airlines Ltd. (SIA) to support the transition, according to information received by Bloomberg from sources familiar with the matter.
The planned change will see Air India internalize tasks such as pre-flight and daily inspections, minor repairs, and troubleshooting—work currently performed by AIESL. This move comes after the recent crash of flight AI171 and a sector-wide safety audit that led to a temporary pause in operations for safety checks.
Tata Group acquired Air India in 2022 as part of a broader transformation effort for the previously loss-making national carrier. Although bringing maintenance services in-house had been part of Air India's long-term strategy before the crash, it was postponed while management focused on returning grounded aircraft to service and improving passenger experience. Sources also cited concerns about AIESL's quality of service, including onboard issues like clogged toilets.
