Air India to take aircraft maintenance in-house with help from Singapore Airlines

The move follows a fatal crash in June.

Air India plans to shift key aircraft maintenance work in-house, ending reliance on state-owned AI Engineering Services Ltd. (AIESL), Bloomberg reported.

The airline will begin taking over pre-flight inspections, minor repairs, and routine troubleshooting from AIESL. The move, backed by shareholder Singapore Airlines (SIA), is part of a broader restructuring strategy and comes after a fatal crash in June and increased scrutiny from regulators.

Air India said India’s current Maintenance, Repair, and Overhaul (MRO) infrastructure cannot support its growing fleet, which includes an order for 570 aircraft.

“To meet the demands of our future operations and ensure world-class reliability and safety, we must invest in building robust MRO capabilities and capacity within the country,” a company spokesperson told Bloomberg..

SIA, which owns 25.1% of Air India, is assisting with the transition.

“As a significant minority shareholder in Air India, Singapore Airlines has been working closely to support Air India’s transformation plan,” an SIA spokesperson said via email to Bloomberg. “This includes providing our expertise and support to Air India, where necessary.”

Concerns about AIESL’s performance — including poor cabin maintenance — had been raised internally even before the June crash of flight AI 171, which killed 241 people. Although the cause is still unknown, the incident triggered a temporary service pause and a sector-wide safety audit.

The DGCA’s recent audit found 93 safety issues at Air India, the highest among Indian carriers. In comparison, IndiGo had 23, and SpiceJet had 14.

Air India currently operates 191 aircraft. Its low-cost arm, Air India Express, flies 115 planes.

The crash has also impacted SIA’s financials, contributing to a 59% drop in quarterly profit through June.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia