Air India is accelerating its transformation from a legacy flag carrier into a global premium player, and nowhere is that shift more visible than in its fast-expanding Premium Economy cabin. From the deployment of brand-new Airbus A350s on marquee long-haul routes to a sweeping retrofit of its narrowbody fleet on busy domestic and regional sectors, the Tata-owned airline is betting that a carefully crafted middle cabin will redefine comfort for passengers who want more than economy without paying business class fares.

A Premium Economy Strategy at the Heart of Air India’s Revival

Premium Economy has moved from a niche add-on to a strategic pillar in Air India’s Vihaan.AI transformation plan, the multi-year roadmap launched to overhaul the airline’s fleet, product and operations. Executives have identified an emerging cohort of travellers in India and overseas who are willing to pay a modest premium for more space, quieter cabins and priority services, particularly on sectors of four hours or longer. Those expectations have shaped the carrier’s new three-class layout on both widebody and narrowbody aircraft.

While many global airlines limit Premium Economy to long-haul widebodies, Air India is taking a different path by embedding the cabin across a broad swathe of its network. The airline already flies Premium Economy on more than eighty aircraft, with that number rising as retrofits progress and newly delivered jets enter service. By late 2025, Air India expects the vast majority of its narrowbody passengers to be traveling on aircraft with modern three-class cabins, including a dedicated Premium Economy section.

The strategy plays to Air India’s strengths as a carrier that straddles high-density domestic routes, burgeoning regional traffic and long-haul corridors from India to North America, Europe and the Asia Pacific. By offering a recognisably consistent Premium Economy product across aircraft types and markets, the airline aims to position itself as the default choice for travellers looking to trade up from economy on both short and long flights.

New A350 Flagship Sets a Higher Benchmark for Comfort

The centrepiece of Air India’s premium push is the Airbus A350-900, the airline’s new flagship widebody now operating key international services. The aircraft features a 316-seat layout arranged in three cabins: 28 flatbed Business Class seats, 24 Premium Economy seats and 264 Economy seats. For passengers in the middle cabin, the A350 promises a distinctly upgraded experience built around both hard product and carefully curated soft touches.

In Premium Economy on the A350, Air India offers a 2-4-2 configuration with 38 inches of seat pitch, 18.5 inches of width and up to 8 inches of recline. Each seat is equipped with a four-way adjustable headrest and a leg rest with foot support, allowing passengers to create more ergonomic seating or resting positions on overnight or ultra-long sectors. The carrier has also installed 13.3-inch high-definition touchscreens at each seat, along with universal AC power outlets and high-power USB-A ports, recognising the increasing importance of personal devices for work and entertainment in flight.

The airline has paired these cabin upgrades with a refreshed set of soft products on the A350, including redesigned chinaware and tableware and updated bedding for Premium Economy and Business Class. On long flights to destinations such as London Heathrow, New York and Newark, these touches are intended to create a more restful environment that feels clearly differentiated from Economy, even as fares remain significantly lower than Business Class options.

Domestic and Regional Rollout Puts Comfort Within Easier Reach

Air India is not confining its Premium Economy ambitions to long-haul routes. The airline has steadily been rolling out a three-class cabin on its Airbus A320 family aircraft, including heavily travelled domestic and short-haul international routes. As part of a major retrofit programme covering dozens of legacy A320neos, the carrier is installing an entirely new interior with refreshed seats, updated upholstery and a dedicated Premium Economy cabin.

The retrofitted narrowbodies typically feature 24 Premium Economy seats alongside Business and Economy cabins, with the middle cabin benefiting from extra legroom, deeper recline and upgraded finishes. Air India has already deployed these aircraft on high-demand routes such as Delhi to Bangkok and is using them on an expanding list of domestic metro-to-metro services, including Delhi to Mumbai, Bengaluru and Hyderabad, as well as trunk sectors from Mumbai to Bengaluru and Hyderabad.

To showcase the new product to trade partners and travellers, Air India has brought its narrowbody Business and Premium Economy seats to major travel industry events. At the South Asia Travel and Tourism Exchange in New Delhi, the airline invited visitors to physically experience the new A320-family seats and to take a virtual-reality tour of the A350 cabins, signalling that product innovation is central to its effort to win back premium customers who had migrated to rivals during the carrier’s leaner years.

Pricing, Access and a Push for “Affordable Luxury”

In a price-sensitive market, the success of any Premium Economy product hinges on how accessible it feels to travellers used to shopping for the lowest fares. Air India has moved to narrow the gap between Economy and Premium Economy with promotional pricing on select domestic routes. For limited periods, the airline has offered upgrades into Premium Economy starting from just a modest increment above standard Economy fares, positioning the cabin as an attainable indulgence for frequent flyers, corporate travellers and leisure passengers seeking extra comfort.

The airline’s own booking channels now place greater emphasis on highlighting the concrete benefits attached to the fare upsell. These include free selection of preferred seats across the Premium Economy cabin, priority check-in and boarding, and priority baggage handling. On busy domestic flights that often operate at or near capacity, these time-saving advantages can be as compelling as the in-flight seat enhancements themselves.

Air India is also backing the product with its overhauled loyalty programme, encouraging members to burn miles or status benefits on Premium Economy redemptions and upgrades. The intention is to familiarise a wider pool of travellers with the cabin, in the belief that once passengers experience the additional space and quieter ambience, they will be more inclined to book Premium Economy as their default choice on future journeys.

Cabin Design Details That Aim to Redefine the Journey

Beyond raw seat dimensions, Air India is focusing on the small but tangible design features that contribute to a more comfortable flight. In Premium Economy cabins, the carrier highlights enhanced recline paired with leg rests, supportive cushions and adjustable headrests designed to reduce neck and lower-back strain. Movable armrests throughout the cabin make it easier for families and couples to share space, while larger windows on the A350, paired with mood lighting, are calibrated to soften jet lag on long-haul flights.

Onboard service has also been recalibrated to underline the premium positioning. Premium Economy passengers are served hot meals presented on high-quality chinaware, with menus updated to reflect both Indian and international culinary preferences. On longer international flights, the carrier offers an expanded selection of beverages and curated snack options, aiming to bridge the gap between Economy and Business in terms of perceived value.

In-flight entertainment is a key part of the package. Where traditional seatback systems are not installed, Air India has rolled out its Vista Stream wireless entertainment platform, providing access to an extensive content library on passengers’ own phones, tablets or laptops. On aircraft fitted with individual screens, Premium Economy travellers benefit from larger displays, improved resolution and responsive touch interfaces. Taken together, these elements seek to turn Premium Economy into a distinct travel environment rather than a slightly roomier version of Economy.

Network Expansion Puts Premium Economy on More Global Routes

The growth of Premium Economy is tightly integrated with Air India’s broader network strategy. As the airline increases services to major international hubs, it is prioritising aircraft fitted with the new cabins on high-yield routes. In the United Kingdom, for example, Air India is ramping up its presence between Delhi and London Heathrow, with additional daily flights from late 2025 operated by A350-900s and Boeing 787-9s equipped with Business, Premium Economy and Economy cabins.

Similar thinking is evident on services to Frankfurt, Paris, Sydney, Melbourne and key Southeast Asian gateways. The airline has been redeploying widebodies and upgraded narrowbodies so that routes connecting India with major corporate and leisure markets consistently feature Premium Economy. In parallel, schedule adjustments are designed to create more convenient one-stop connections through Delhi and Mumbai for travellers originating in North America and Europe and heading to destinations across Asia and Australasia.

This network architecture effectively broadens the reach of Premium Economy beyond nonstop city pairs. A traveller flying from New York to Bangkok via Delhi, for instance, can now opt for a Premium Economy experience on both transcontinental and regional legs, with coordinated ground handling and priority services smoothing the transfer between flights. The model is aimed at reinforcing Air India’s ambition to make its hubs true global transit points with a compelling proposition across all cabins.

Balancing Staff Policies and Seat Availability to Protect the Product

As Air India invests heavily in its premium cabins, it is also recalibrating internal policies to ensure that paying customers have first claim on the enhanced seats. The airline has signalled a shift by requiring senior staff, including top management, to travel in Economy on domestic sectors by default. Access to unsold Premium Economy or Business seats is now restricted until shortly before departure, minimising the risk of premium cabins filling with non-revenue passengers while demand from full-fare travellers remains unmet.

The move is emblematic of a broader change in culture at the airline, where the focus is increasingly on commercial discipline and customer experience. By protecting availability in Premium Economy for those who choose to pay for additional comfort, Air India aims to build trust in the product and avoid the perception that upgrades are handed out too freely. For frequent flyers and corporate travel managers, that reliability is an important factor when deciding whether to institutionalise Premium Economy as a standard booking class.

Internally, the policy shift also underscores the message that the airline’s leadership is committed to the same product improvements that passengers see. With Tata Group capital earmarked for a sweeping fleet modernisation by late 2025, aligning staff travel policies with revenue goals is viewed as a necessary step to ensure the success of the upgraded cabins, including Premium Economy.

Air India’s Premium Economy expansion is unfolding against the backdrop of intensifying competition both within India and on international routes. Rival Gulf and Asian carriers have invested heavily in their own premium cabins, and Indian travellers are increasingly familiar with international standards of comfort and service. At the same time, the domestic market has seen rapid growth in middle-class and upper-middle-class consumers who are ready to pay more for a better experience, especially on routes prone to delays or operating during inconvenient hours.

Industry analysts note that Premium Economy has proven resilient even as base economy fares fluctuate. For airlines, the cabin can generate significantly higher unit revenue without the costs associated with lie-flat business seats, making it a crucial lever in improving profitability on long sectors. For Air India, the decision to embed Premium Economy deeply across its fleet and network reflects a belief that the segment will continue to expand as India’s outbound tourism and business travel markets mature.

As retrofits progress and more A350s and 787-9s join the fleet, travellers can expect to see Premium Economy featured on an ever-growing list of routes linking India with North America, Europe, the Middle East, Southeast Asia and Australia. For passengers who have long associated the Maharaja with nostalgia rather than contemporary comfort, the new middle cabin offers perhaps the clearest indication that Air India is serious about redefining how it serves those who want something distinctly better than economy without stepping all the way up to the front of the plane.