Air India Ltd. plans to lean on shareholder Singapore Airlines Ltd., or SIA, to bring some of its aircraft maintenance services in-house, shifting away from a state-owned provider, according to information received by Bloomberg.

The Indian flag carrier is preparing to internalize pre-flight and daily inspections, minor repairs, and troubleshooting tasks currently handled by AI Engineering Services Ltd. (AIESL), said the people, who asked not to be identified because the information isn’t public.

The phased transition away from AIESL follows the recent AI171 crash as well as a broader safety audit across the sector plus temporary pause in operations related to safety checks.

Air India was undergoing a sweeping transformation under its new owner, Tata Group, which acquired the loss-making, formerly state-run airline in 2022.

While the move to gain control over maintenance had been part of Air India’s long-term strategy even before the crash, it had been deferred as management prioritized returning aircraft to service and improving in-flight experience, the people said.

Internally, there have also been concerns about the quality of service provided by AIESL — formerly a subsidiary during state ownership — including issues such as clogged toilets on board, the people added.

Scaling Up MRO Capacity

“The Indian carrier continues to work closely with AIESL,” an Air India spokesperson said in an emailed statement. “However, with our fleet expansion — 570 aircraft including a significant number of widebody jets — India’s current MRO [Maintenance, Repair and Overhaul] infrastructure is not equipped to support this scale.”

“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,” the spokesperson added.

SIA, which holds a 25.1% stake in Air India, will support the transition by helping the carrier build up internal maintenance capacity, the people said.

“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 in an emailed response. “This includes providing our expertise and support to Air India, where necessary.”

The collaboration marks a reversal of roles between the two airlines. In the 1970s, Air India had provided aircraft maintenance assistance to Singapore Airlines in its early years of operation.

Sector Scrutiny and Audit Findings

The June crash has intensified regulatory scrutiny of the Indian aviation sector, particularly around aircraft maintenance.

According to a recent audit by India’s Directorate General of Civil Aviation (DGCA), Air India Group registered the highest number of safety findings among all local carriers. The report — part of routine safety oversight that began before the crash — recorded 93 findings for Air India. By contrast, IndiGo had 23, and SpiceJet Ltd. had 14.

Air India operates 191 aircraft, while its low-cost subsidiary, Air India Express, operates another 115 planes, according to data from flight-tracking site Flightradar24.

AirlineRatings CEO Sharon Petersen commented:
“Whenever an accident as tragic and serious as the crash of AI171 occurs, scrutiny on the airline goes into overdrive — and that often leads to information being inaccurate or exaggerated. The crash report was wildly inconclusive, which isn’t uncommon for a preliminary investigation. However, at this stage, it does appear that a significant amount of responsibility still lies with the pilot. It is simply too early to formulate a conclusion”

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