In order to increase the amount of money it makes from each flight, Air India is switching to algorithm-based software that has long been used by competitors. Until recently, it was reliant on an antiquated manual pricing system.
Another illustration of Air India’s rapid transformation under the new ownership of Tata Group is the airline’s testing of ChatGPT, a well-liked chatbot from OpenAI, to replace paper-based procedures.
As Air India works to eliminate decades-old bureaucratic procedures and regain customers from powerful domestic rival IndiGo and Dubai’s Emirates, the effort to modernise highlights the decay left by years of underinvestment.
“Frankly the system is almost so bad it’s good,” Chief Executive Officer Campbell Wilson told Indian airline executives last week, adding that this offered the chance to start from scratch rather than “jury-rig” existing architecture.
Air India is merging with Vistara, while low-cost Air India Express and AirAsia India are also coming together, in addition to overhauling every aspect of operations, from systems to supply chains.
Campbell Wilson claimed that some fields, like technology, allow for a fresh start, which is why he is putting artificial intelligence (AI) and other tools at the centre of Air India’s reboot.
Instead of the outdated practise of having one fare for each block of seats, modern “revenue management” software constantly anticipates where people want to go and how much each individual flyer is willing to pay.
The success of Air India is crucial for Prime Minister Narendra Modi’s administration because it wants to use its size and influence to make India a global aviation power like Dubai or Singapore.
In order to get idle planes flying before Air India begins receiving the 470 jets it ordered in a record deal last month, Wilson’s immediate game plan is to address pressing issues. For instance, rather than waiting for suppliers to deliver the outdated parts, it is collaborating with Tata Technologies to manufacture some plastic components for economy-class seats locally.
Additionally, it is reworking its network strategy to draw Indians abroad while grabbing any available planes it can find on lease. Wilson stated in an interview conducted last week on the sidelines of the CAPA India conference that any inconsistencies can be ironed out as the turnaround gains momentum.
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