Air India Faces Turbulence as Chairman Urges Continued Progress

Chandrasekaran Urges Air India Employees to Stay Focused Amid Industry Challenges

Tata Sons chairman Natarajan Chandrasekaran has urged Air India employees to focus on execution amid industry-wide challenges. Speaking at a townhall at Air India's headquarters in Gurugram on Friday, Chandrasekaran acknowledged that the airline is facing a challenging period. The airline industry has been grappling with supply-chain constraints, rising fuel costs, and operational challenges, with a war in the Gulf region further affecting operations.

Air India is not alone in its struggles. Homegrown carriers, including Air India, Air India Express, IndiGo, Akasa Air, and SpiceJet, were operating 350 daily flights to the Gulf before the US and Israel attacked Iran in late February. Since then, homegrown carriers have been flying fewer than 100 flights. Despite these challenges, Chandrasekaran expressed confidence in Air India's future, citing significant progress made over the past four years since the Tata Group bought the carrier in January 2022.

Under the Tata Group, Air India has made significant strides, including hiring over 17,000 employees, consolidating four airlines into two (Air India with Vistara and Air India Express with AirAsia India), modernizing core systems, expanding the fleet, and refurbishing aircraft. Operational metrics and network reach have improved, contributing to a better customer experience.

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However, Air India faces its own set of challenges. The airline is scouting for a successor to chief executive Campbell Wilson, who decided to step down before his five-year tenure was to end in July 2027. Air India's seven-member board has instituted a committee to find a CEO, with Wilson continuing to be with the airline until then.

Air India's financial performance has shown improvement, with its standalone revenue rising 13% to ₹61,080 crore in FY25. However, its low-cost arm Air India Express reported a widening loss of ₹5,822 crore, even as revenue rose 26% to ₹16,033 crore. Despite this, the Tata Group remains committed to Air India, with Chandrasekaran reiterating that the Board is fully supportive and will continue to work closely with the management team.