When the Tata Group brought back the ‘Maharaja’ i.e. Air India, a new hope was born in the aviation market. But at present this major airline of the country is facing heavy gusts of wind. On one hand there is a huge loss of about Rs 9,800 crore, and on the other hand there is news of sudden resignation of the CEO of the company. In such a challenging environment, Tata Sons Chairman N. Chandrasekaran himself has taken charge. He has made it clear in the direct conversation (Townhall) with the employees that no matter how difficult the times are, the Tata Group stands strongly with Air India.
4 years, 17 thousand new recruitments… still why did the alarm sound?
In the last four years, there has been a large scale ‘overhauling’ (reform) within Air India. Four different airlines have been merged into two companies. An army of about 17,000 new employees has been raised, old systems have been upgraded and gleaming new aircraft are being added to the fleet. This has had a direct impact on flight service and the experience of passengers. Despite this, Chairman Chandrasekaran cautioned the employees that although the future is bright, the current reality is extremely challenging. He gave strict instructions to the team to control expenses instead of talking about unnecessary things and focus on proper execution.
Financial hole of Rs 9800 crore
Any airline earns profit not only by good service but also by right routes and cheap fuel. The biggest headache for Air India has been external circumstances. Due to restrictions imposed by Pakistan on its airspace and ongoing tension in West Asia (Middle East), airlines have to take their aircraft through long routes. This simply means – more fuel and higher expenses. The situation was such that in March, Air India had to cancel about 2,500 flights to West Asia and it was able to operate only on 30% of its normal schedule. Due to this turmoil and huge investment in fleet expansion, the company’s total loss reached a worrying level of Rs 98.08 billion (about Rs 9,800 crore) in the financial year 2024-25.
The airline also faced regulatory setbacks
Apart from losing money, the airline has also faced regulatory setbacks. The tragic crash of Boeing 787 near Ahmedabad in June 2025 (in which 260 people lost their lives) alerted aviation safety agencies. After this, the airline received serious warnings like flying the aircraft without a valid certificate and negligence in checking emergency equipment. Amidst these immense pressures, Air India CEO Campbell Wilson, who was appointed for five years in 2022, has also decided to step down. He will leave in 2026 instead of 2027. However, he will continue to handle the work till the arrival of the new successor so that there is stability in this period of change.