Air India aims for new heights with five-year programme
New aircraft, improved links, better service and technology upgrades on the agenda
By Amit RoyAug 17, 2024
EASTERN EYE readers, who use Air India probably more than those of any other media in the UK, will be heartened by news of the five-year programme to return India’s national carrier to its glory days.
In charge is its CEO and managing director, Campbell Wilson, who proudly showed off Air India’s most modern aircraft, the Airbus A350, at the recent Farnborough Air Show.
Wilson, a New Zealander who was recruited in May 2022 from the very successful Singapore Airlines, described the A350, which is assembled in Toulouse in France, as “the most modern aircraft in the world today”.
He said: “We are going to be sending this brand new aircraft to London twice a day (from Delhi and Mumbai) from September 1.”
Air India’s business class with enclosed suites
At a briefing given to Eastern Eye and others in the airline trade at the St James Court, A Taj Hotel, he told his audience: “Most significantly, you have probably read about the aircraft order we made, which was the largest in history, of 470 aircraft, with a list price of about $70 billion (£55bn). And those aircraft are now coming. We have an aircraft arriving in India, brand new, every six days.
“We have 34 more (A350) coming as part of the 400 aircraft order. And that aircraft really is a product second to none. There’s premium economy, there’s business class with enclosed suites. There is the absolute latest of inflight entertainment systems. And it is really a demonstration of the standard of Air India of the future.”
Ultimately, it will be the diaspora, comprising people such as the readers of Eastern Eye, who will determine whether Wilson is able to achieve what the Economist has called the “Everest of corporate turnarounds”.
Air India has announced “a landmark advertising campaign across London. In partnership with McCann Worldgroup and IPG Mediabrands, this substantial investment will bring Air India closer to UK consumers than ever before, featuring ads across 9,000 train panels, 300 black taxis and digital screens in London offices and shopping centres.”
Premium economy seats
This will earn the airline greater brand recognition, but whether this is money well spent remains to be seen. Indians rely more on word of mouth recommendation from friends and acquaintances and the “desi circuit”.
Asked by Eastern Eye whether its readers could expect an efficient service at affordable fares – prices are very high in the winter months – Wilson replied: “Obviously, there’s a commercial sensitivity to a lot that we do. So, I wouldn’t tell you too much about our commercial plans.
“I talked about doubling of capacity, I talked about deploying our new products, such as flights from Mumbai and from Delhi into Heathrow very shortly. I have talked about the addition of flights from Bangalore to London, and from Kochi, Goa, Ahmedabad and Amritsar into Gatwick. So, I think that alone should give some confidence that we see a lot of opportunity in the UK market.
Economy seats
“We were operating with aircraft that had not been well maintained for many years. They were airworthy, but not particularly reliable. That’s also why we’re setting up our new maintenance organisation, so we can have much more hands-on control over what happens to these aircraft. But I think the fact that we’re deploying so many new aircraft, or so much new products into the UK should give you reasonable confidence that the Air India of today – and especially tomorrow – is certainly not the Air India of yesterday.”
The airline was founded in 1932 by the Parsi visionary JRD Tata, who was himself a qualified pilot. Tata Airlines became a public company in 1946 under the name Air India. But because it ran into serious financial difficulty in recent years, it was privatised and returned to the ownership of the Tata group in January 2022.
But in the 1960s and 1970s, when the airline was famed for its “Maharajah” service, Air India still retained a touch of magic. Its urbane UK regional director, Maneck Dalal, was based in an office in New Bond Street. He often spoke of how in the late 1940s, Heathrow was nothing more than a collection of huts on a muddy field where the rabbit population had to be controlled to allow aircraft to land.
The Airbus A350
Dalal was ticked off by his accountants for holding a champagne party every summer for students in Cambridge, where he himself had been an undergraduate. He dismissed the objections with the argument: “They are my future passengers.”
But decline set in after he left. One of his successors was so frustrated by Air India’s work culture that he once declared: “The problem with Air India is that it has too many Indians working for it.”
A strike was organised by Mala Sen, an Air India shop steward in London who later wrote the bestseller, Bandit Queen.
To cope with “no shows”, the airline would overbook flights. If more passengers turned up than there were seats, some would be “off loaded”. Late arrivals and departures became a common problem. Another was that some passengers, more used to Indian style lavatories, could not cope with the western toilets on board.
There were anecdotes that some passengers, offered a sweet before take-off, would grab the whole tray. It was also not unusual for cabin crew to be addressed as servants. “I said, ‘water,’” some would shout. And government officials, who could travel for free or at discounted rates with their families, abused their privileges. It is no surprise the airline went broke.
A black taxi featuring Air India’s advertisement
The result was that airlines such as Emirates began to pick up the traffic to India.
But now Wilson said he is on a “mission” to make Air India one of the world’s great airlines. He gives the impression of a man who knows all there is to know about commercial air traffic.
He said the five-year programme to fix Air India’s problems is called Vihaan.AI – “it is Sanskrit for dawn of a new era, which is what we think we’re embarking on”. He added: “We’ve been here (in the UK) for 76 years. Presently, we fly to three airports, although there are friends from Manchester and other airports here who would love us to add to that; I can assure you that that’s in the pipeline.”
Wilson explained his five-year plan in greater detail: “The first six months really was about triage and stabilisation. The next 12 months was about building the systems, recruiting people, deploying technology, and a number of other things to lay the platform for growth for the airline.
“In addition to the $70bn order, we’ve committed $400m (£314m) to refitting these aircraft. We’ve spent $200m (£157m) in re-platforming the entire business from an IT perspective, and we have recruited 9,000 new staff. Our cabin crew age has fallen from nearly 50 down to 28, so it is a real change in generation, change in capability, change in mindset, change in technology, change in aircraft. Everything is changing.”
He said: “Of course, the most important part is the customer experience. We’ve upgraded seats, we’ve upgraded menus, we’ve upgraded technology. But this is only progressively rolling out.”
During the question and answer session after his briefing, the sense of optimism was reflected by the former British diplomat, David Landsman, who was executive director of Tata UK for over five years until 2019.
He told Wilson: “I’m impressed and delighted by what you presented, and it sounds as though Air India would absolutely be among the very top airlines.”
Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)
INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.
He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.
“Discussions have been going on in a positive atmosphere with seriousness since March. It is progressing, and both the countries are satisfied with the progress,” Goyal told reporters. On Wednesday, he had also said that India is in “active dialogue” with the United States.
Trump this week said there would be “no difficulty” for the two countries to reach a successful conclusion and that he looked forward to speaking with his “very good friend” Modi in the coming weeks. In a post on Truth Social, he wrote he was “pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations.”
Modi responded on X, welcoming Trump’s statement and expressing confidence that the negotiations would help unlock the potential of the partnership. He said India and the US are close friends and natural partners and are working to conclude the discussions at the earliest.
The two countries have completed five rounds of negotiations since March. The sixth round, scheduled to take place in India last month, was deferred after Washington imposed an additional 25 per cent tariff on Indian goods over purchases of Russian crude oil.
The aim of the pact is to more than double bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 bn. Trade ties have been strained due to tariffs, with the US imposing a 50 per cent import duty on Indian goods from August 27. The move has hit exports from labour-intensive sectors such as shrimp, textiles, leather and footwear. India has described the tariffs as unfair, unjustified and unreasonable.
Talks have also been delayed over US demands for greater access in sensitive sectors such as agriculture and dairy. India has said repeatedly that it will not compromise the interests of small and marginal farmers and cattle rearers.
The US is India’s largest trading partner. In 2024-25, bilateral trade in goods was USD 131.8 bn, with India’s exports at USD 86.5 bn and imports at USD 45.3 bn. The US is also the third-largest investor in India, with foreign direct investment of USD 76.26 bn between April 2000 and June 2025, accounting for 10 per cent of India’s total FDI inflows.
On protests in Nepal, Goyal said the Indian government is monitoring the situation and working to bring back Indian citizens stranded there. He added that the Indian mission in Nepal is ready to provide support and expressed hope for normalcy to return soon.
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At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)
INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.
At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.
Bhatt was born in 1984 in Poquoson, Virginia, to immigrant parents from Gujarat, India. His father, an aerospace engineer, worked at NASA. He grew up in a household where English was a second language and money was limited. He later attended Stanford University, where he studied physics and earned a master’s degree in mathematics.
In 2013, Bhatt co-founded Robinhood with Vlad Tenev, a fellow Stanford graduate. The platform introduced commission-free stock trading to retail investors in the United States and later expanded into retirement accounts and high-yield savings products. The company gained widespread attention during the Covid-19 pandemic, when trading activity surged around so-called meme stocks.
Robinhood went public in 2021 at the height of the retail investing boom. Bhatt served as co-CEO with Tenev until 2020, when he moved into the role of chief creative officer. In 2024, he stepped down from his executive position but continues to serve on Robinhood’s board of directors while retaining his 6 per cent stake.
Robinhood’s stock has seen significant gains over the past year, rising by about 400 per cent. The increase has been linked to a boost in cryptocurrency-related sales, new products such as individual retirement accounts and high-yield savings, and a strong performance in 2024, when the company reported USD 3 billion (£2.2 billion) in revenue.
Bhatt’s recognition in the Forbes 400 list underscores the continuing influence of technology entrepreneurs in the American financial sector. His career reflects the trajectory of several Indian-origin leaders in the United States, who have made a mark in technology and finance in recent years.
Forbes’ annual ranking of the 400 wealthiest Americans is based on estimates of net worth, which include publicly disclosed stakes in companies, real estate holdings, and other assets. Bhatt joins the ranks of young billionaires who have built fortunes through technology-driven ventures.
In addition to his role with Robinhood, Bhatt has been noted for his early life influences. Growing up in Virginia, he was exposed to science and technology through his father’s aerospace career. His academic path at Stanford provided the foundation to pursue entrepreneurial opportunities in financial technology.
Robinhood, under the leadership of Bhatt and Tenev, has changed how millions of Americans approach investing by lowering barriers to entry. While Bhatt is no longer in an executive role, his continued stake in the company keeps him closely tied to its growth and future direction.
Bhatt’s inclusion in the 2025 Forbes 400 as one of the youngest billionaires highlights his role in shaping retail investing and signals the growing presence of Indian-origin entrepreneurs in the US technology and finance industries.
(With agency inputs)
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The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.
The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.
The government has faced two major setbacks this week. Deputy prime minister Angela Rayner resigned over failing to pay a property tax, and on Thursday, Starmer dismissed Peter Mandelson as ambassador to Washington after new disclosures about his ties with sex offender Jeffrey Epstein.
While the July GDP figure matched market expectations, limiting the effect on the pound, the government admitted challenges in lifting growth.
"We know there's more to do to boost growth, because, whilst our economy isn't broken, it does feel stuck," a Treasury spokesperson said, as Labour prepared for its budget announcement in late November.
The data showed a 1.3 per cent fall in production, offsetting gains in services and construction.
"The stagnation in real GDP in July shows that the economy is still struggling to gain decent momentum in the face of the drag from previous hikes in taxes and possible further tax rises to come in the budget," said Paul Dales, chief UK economist at Capital Economics.
Chancellor Rachel Reeves said last week that she would maintain a "tight grip" on public spending, setting November 26 for her budget speech.
The UK economy has faced weak growth since Reeves raised taxes and reduced public spending after Labour’s election win in July last year.
Separate ONS data on Friday showed exports of goods to the United States rose in July but stayed below levels seen before US president Donald Trump’s tariff measures.
Exports to the US increased by £800 million after London and Washington reached a trade deal that eased some tariffs, particularly on UK-made vehicles.
Trump will visit the UK next week for a state visit that includes talks with Starmer and a banquet hosted by King Charles.
(With inputs from agencies)
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India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.
INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.
Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.
They said the bill is unlikely to pass in its current form but could trigger long-term changes in how American firms purchase IT services. Companies heavily dependent on outsourcing are expected to resist the move, setting up lobbying and possible legal battles.
India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot. The industry has also faced criticism abroad over jobs shifting to India.
Last week, Republican Senator Bernie Moreno introduced the HIRE Act, which proposes taxing companies that hire foreign workers instead of Americans. The bill also aims to prevent firms from claiming outsourcing expenses as tax-deductible, with the revenue directed toward US workforce development.
The proposal comes at a difficult time for Indian IT, which is already seeing weak revenue growth in its key US market as clients cut non-essential spending due to inflation and tariff concerns.
“The HIRE Act proposes sweeping changes that could alter the economics of outsourcing and significantly increase the tax liability associated with international service contracts,” said Jignesh Thakkar, EY India’s compliance head.
In some cases, combined federal, state and local taxes could raise the levy on outsourced payments to as much as 60 per cent, Thakkar added.
“While its partisan proposal may seem initially attractive, it’s ultimately an artificial cost which makes organisations less competitive and profitable globally,” said Arun Prabhu, partner at Cyril Amarchand Mangaldas.
The idea has been gaining traction. This month, White House trade adviser Peter Navarro reposted a call from far-right activist Jack Posobiec for tariffs on services as well as goods.
“When political noise turns into regulatory risk, clients quickly insert contingencies, reopen pricing and demand delivery flexibility,” said Saurabh Gupta, President of HFS Research. “Clients will simply take longer to sign, longer to renew, and longer to commit transformation dollars,” Gupta said.
Backlash expected
Industry watchers said US firms are likely to push back strongly against the bill and challenge it legally if it is enacted.
“A bill like this would probably face a lot of backlash from US companies that rely heavily on outsourcing, who would likely bring litigation to challenge various aspects of the bill, if it were ever to be passed into law,” said Sophie Alcorn, CEO of Alcorn Immigration Law.
Analysts noted that sweeping restrictions are unlikely due to the difficulties of enforcement. “More likely is a diluted version, with narrower provisions or delayed enforcement,” said HFS Research CEO Phil Fersht.
The bill could also affect US firms’ global capability centres (GCCs), which have developed from offshore back offices to high-value hubs for research, finance and operations.
“It will be hard to pull back from existing work, but new set-ups and expansion may get impacted,” said Yugal Joshi, partner at Everest Group.
The proposed tax will affect the cost advantage that drives GCC location decisions, said Bharath Reddy, partner at CAM.
“However, the lack of availability of appropriate human capital in the US will continue as a problem, and which can be addressed in the near future only through outsourcing,” he added.
(With inputs from Reuters)
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'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.
CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.
Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.
Economists expect Reeves will have to raise tens of billions of pounds in additional revenue, citing higher borrowing costs, weaker growth prospects and parliament’s rejection of welfare cuts.
"Our economy isn't broken, but it does feel stuck," Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.
The report suggested reducing sudden tax increases for small businesses when they expand.
"Tax reforms such as tackling cliff-edges in business rates and making reliefs fairer are vital to driving growth," Reeves said in a statement.
Other options under review include changes to how the tax is calculated and additional reliefs when a property’s value rises after improvements. Further details will be set out in the budget, the ministry said.
Helen Dickinson, chief executive of the British Retail Consortium, welcomed the proposals but said the government should provide clarity on a promised reduction in rates for retail, hospitality and leisure businesses.
"Until we get clarity on these changes, which isn’t expected until the budget, many local investments in jobs and stores are being held back," she said.