“While our future is bright and we have laid a solid foundation for our ambition, we are going through a challenging time, the impact of which is most visible in the airline industry,” said Chandrasekaran. “What matters now is staying focused on execution. Our focus should be on what is within our control, where we can improve, be precise on costs and remain grounded in the reality of the situation.”
Chandrasekaran advised employees to take pride in what is being done.
Stressing the airline’s core priorities, the chairman said, “Safety is of utmost importance for Air India. It is non-negotiable and sits at the centre of every decision we take across operations, engineering, training and customer experience.”
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“Work together, keep the customer in mind. The journey has just begun, and we have a long way to go. Keep at it. We will get there,” Chandrasekaran told the airline employees during the townhall.
Recently, Air India Chief Executive Officer (CEO) Campbell Wilson announced his resignation. Appointed on a five-year contract in 2022, Campbell’s tenure as Air India CEO is scheduled to conclude in July 2027. Although, he had conveyed his intention to step down in 2026 to Chandrasekaran in 2024 and, since then, has been working to ensure the organization and leadership team is on a stable footing for the transition. The Tata-owned carrier clarified that he will remain in the role until his successor is announced and in place.Read more: Air India finds large-scale misuse of its leisure travel policy for staff, initiates corrective actions
Turbulent times
For Air India, the sequence of events began with the June 2025 crash of a Boeing 787 near Ahmedabad that killed 260 people. The incident triggered intense scrutiny from regulators and placed the airline’s operations under closer watch.
In the months that followed, regulatory concerns extended beyond the crash. ET had reported that Air India was reprimanded for safety lapses, including flying an aircraft multiple times without a valid airworthiness certificate and operating planes without checking emergency equipment. The airline later acknowledged the need for improvements in compliance and internal processes. At the same time, the airline’s turnaround faced pressure from external factors. Pakistan’s closure of its airspace to Indian carriers forced longer routes on key international sectors, increasing fuel consumption and operating costs.
The conflict in West Asia added to the disruption. In a note to employees in March, Wilson said Air India had cancelled around 2,500 flights to the region over three weeks and was operating at about 30% of its normal Middle East schedule due to restricted airspace and airport closures, warning of a significant financial impact. These disruptions affected routes to Europe and North America, with flights being rerouted and costs rising as a result. Financial pressure continued to build.
Air India and its low-cost arm reported a combined loss of ₹98.08 billion in 2024-25, even as the airline continued to invest in fleet expansion and refurbishment.
