Air India Terminates Over 1,000 Staff in Three Years Due to Ethical Breaches

Air India Cracks Down on Unethical Behavior Amid Financial Headwinds

Air India has taken a stern stance against unethical behavior among its staff, terminating over 1,000 employees in the last three years for breaches, including misusing the employee leisure travel system. The airline's chief executive, Campbell Wilson, emphasized the importance of adhering to the company's code of conduct, even when no one is watching.

As the airline grapples with significant financial headwinds, Wilson addressed staff during a town hall meeting on Friday, highlighting the need for cost-saving measures. Air India, which is owned by the Tata Group, currently employs around 24,000 staff members.

Over the past three years, the airline has terminated more than 1,000 employees for unethical behavior, such as smuggling items off planes and allowing excess baggage onto aircraft without being charged. Additionally, hundreds of staff members have misused the Employee Leisure Travel (ELT) system, a practice that Wilson deemed unacceptable.

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In March, sources revealed that the airline had detected large-scale discrepancies in the utilization of its leisure travel policy, involving more than 4,000 employees. As a result, corrective actions were initiated, including imposing penalties on erring staff members.

To mitigate its financial losses, Air India has implemented cost-cutting measures, including holding back annual increments for staff and asking them to cut discretionary spending and non-critical expenditures. Wilson warned that the airline is facing "tough times," and that the upcoming year will be particularly challenging if the Middle East market does not improve.

Financial Performance

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The Air India Group, which comprises Air India and Air India Express, is projected to have incurred a loss of over Rs 22,000 crore in the financial year ended March 2026.