Chandrasekaran urges Air India to stay the course amid turbulence
Tata Sons chairman Natarajan Chandrasekaran on Friday urged Air India employees to focus on execution amid industry-wide challenges, breaking his silence on developments at the airline after the recent resignation of CEO Campbell Wilson.
“Our future is bright and we have built a strong foundation for our goals, but we are going through a challenging period whose impact is most visible in the airline industry,” Chandrasekaran was quoted as saying to employees at a town hall at Air India’s headquarters in Gurugram on Friday.
“The important thing now is to focus on execution. Our focus should be on what is within our control, where we can improve, being specific about the costs and grounded in the reality of the situation,” he said.
Chandrasekaran reiterated that the Tata Group remains committed to Air India. “The board is in full support and will continue to work closely with the management team,” he said.
Chandrasekaran reportedly said that the airline has made significant progress in the last four years since Tata Group acquired the carrier in January 2022. This includes hiring more than 17,000 employees, merging four airlines into two (Air India with Vistara and Air India Express with AirAsia India), modernizing core systems, expanding the fleet and renewing aircraft. Operational metrics and network access improved, contributing to a better customer experience.
But the pressure continues. Airlines around the world, including India, are grappling with supply chain constraints, rising fuel costs and operational challenges. The war in the Gulf region, a key market that accounts for almost half of Indian carriers’ revenues, has further affected operations, according to the country’s civil aviation ministry.
Local 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, domestic carriers have operated fewer than 100 flights.
Beyond macroeconomic headwinds, Air India also faces its own challenges. The airline is searching for a successor to Wilson, who has decided to step down before his five-year term ends in July 2027.
Air India said in a press release dated April 7 that its seven-member board has formed a committee to find a CEO. Until then, Wilson would continue working at the airline.
Mint He was the first to report Wilson’s resignation late Monday. He filed his documents on March 30, according to an executive with direct knowledge of the matter. Air India did not respond Minttoday’s town hall and questions about Wilson’s resignation date.
Air India continues to be the largest loss-making entity within the Tata Group. Standalone revenue up 13% in FY25 ₹61,080 crore, losses narrowed ₹3,976 crore ₹5,031 crore a year ago. But its low-cost arm Air India Express reported a widening loss. ₹5,822 crore even if revenue increases by 26% ₹16,033 crore.
