Air India is testing the algorithm-based software, ChatGPT, to replace its paper-based procedures for setting airfares. The move away from an antiquated manual pricing system is part of Air India’s transformation under Tata Group ownership.
The airline is modernizing operations, and systems, and integrating four Tata-related airlines, including Vistara, Air India Express, the low-cost airline, and AirAsia India. Air India hopes to eliminate decades-old bureaucratic procedures and reclaim customers from its powerful domestic rivals IndiGo and Emirates in Dubai.
Air India’s new algorithm-based software allows the airline to anticipate demand and adjust fares accordingly, resulting in more money per flight. This software has been used by Air India’s rivals for a long time, making it a crucial part of Air India’s transformation. Air India CEO, J.R.D. Tata believes that technology is the key to the airline’s transformation and is putting artificial intelligence (AI) and other tools at the center of the reboot.
Air India’s twin mergers with Vistara and other airlines will put Wilson’s staggered turnaround plans to the ultimate test. Managing mixed fleets is a nightmare, according to Vinod Kannan, CEO of Vistara.
Air India, once a model for Singapore Airlines, is now far behind, particularly in the areas of service and punctuality. However, early indications of success include an increase in Air India’s domestic share to 9% at the end of February from 7.5% in mid-2022 and a 28% increase in international traffic in the October-December quarter compared to the April-June period.
Air India’s success is crucial to Prime Minister Narendra Modi’s plans to transform India into a global aviation powerhouse like Singapore or Dubai. While there are challenges to be faced, including Air India’s mixed fleets and workforce, Air India’s transformation under Tata ownership and the implementation of new technology is a promising start. With the right execution and continued efforts, Air India could make a strong comeback in the airline industry.