Air India's widebody fleet upgrade program is facing further delays and is now projected to be completed by October 2028. This extends the initial five-year transformation plan announced by the Tata Group after taking over the airline in January 2022. The primary reason cited for the delay is ongoing disruptions in the global supply chain.

The \$400 million fleet retrofit program aims to enhance the flying experience and improve the operational reliability of Air India's legacy fleet. The program includes significant upgrades to both the widebody and narrowbody aircraft.

The widebody retrofit program focuses on Air India's Boeing 787 Dreamliners and Boeing 777-300ER aircraft. The airline has a fleet of 26 legacy B787-8 aircraft and 13 Boeing 777-300ER aircraft that will undergo the upgrades. The first B787-8 (VT-ANT) was sent to a Boeing facility in Victorville, California, in July 2025 for the retrofit. A second aircraft is scheduled to depart for the same facility in October 2025, with both aircraft expected to return to service in December 2025. Air India aims to complete the retrofitting of all 26 B787-8s by mid-2027. Following the 787-8 upgrades, Air India will begin retrofitting 13 of its legacy Boeing 777-300ER aircraft in early 2027, with a target completion date of October 2028.

The retrofit program includes the installation of brand-new seats in each cabin (Business Class, Premium Economy, and Economy Class), advanced in-flight entertainment (IFE) systems, new carpeting, curtains, upholstery, lavatories, and galleys. These upgrades are designed to align with the new Air India product and customer experience standards.

In addition to the interior upgrades, Air India is implementing a Reliability Enhancement Programme to upgrade the avionics and other critical components of its 26 legacy B787-8 aircraft. This program aims to reduce operational disruptions and improve overall reliability. The enhancement program involves analyzing maintenance and configuration records for these aircraft and implementing recommended modifications based on Boeing's service information bulletins.

Air India is also retrofitting its narrowbody fleet of 27 legacy A320neo aircraft. This program commenced in September 2024 and is expected to be completed by September 2025. As of August 9, 2025, 15 A320neo aircraft had been retrofitted, with the 16th aircraft scheduled to return to service on August 11, 2025. The remaining 11 A320neo aircraft will be retrofitted by September 2025. The upgraded A320neo aircraft, featuring all-new cabins, are being deployed on key domestic and short-haul international routes. The addition of a third maintenance line at GMR's Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad has expedited the retrofitting process.

The delays in the widebody fleet upgrade have been attributed to supply chain bottlenecks and issues with seat suppliers. Seat manufacturers have faced strains due to delayed certifications from regulators, compounded by manpower shortages following the pandemic.