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 after chief executive Campbell Wilson's recent resignation.

“Our future is bright and we have laid a strong foundation for our ambitions, but we are going through a challenging period, the impact of which is most visible across the airline industry,” Chandrasekaran reportedly told employees in a townhall at Air India’s headquarters in Gurugram on Friday.

“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,” he said.

Chandrasekaran reiterated that the Tata Group remains committed to Air India. “The Board is fully supportive and will continue to work closely with the management team,” he said.

Chandrasekaran reportedly said the airline has made significant progress over the past four years, since the Tata Group bought the carrier in January 2022. This includes 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.

However, pressures persist. Airlines globally, including in India, are grappling with supply-chain constraints, rising fuel costs, and operational challenges. A war in the Gulf region—a key market that accounts for nearly half of Indian carriers’ revenues, according to the country's civil aviation ministry—has further affected operations.

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 February end. Since then, homegrown carriers have been flying fewer than 100 flights.

Beyond the macroeconomic headwinds, Air India faces its own set of challenges. The airline is scouting for a successor to Wilson, who decided to step down before his five-year tenure was to end in July 2027.

Air India, in a press release dated 7 April, said that its seven-member board has instituted a committee to find a CEO. Until then, Wilson would continue to be with the airline.

Mint was the first to report Wilson’s resignation late Monday. He had put in his papers on 30 March, according to an executive with direct knowledge of the matter. Air India did not respond to Mint's queries on today's townhall and the date of Wilson's resignation.

Air India remains the largest loss-making entity within the Tata Group. In FY25, its standalone revenue rose 13% to ₹61,080 crore, while losses narrowed to ₹3,976 crore from ₹5,031 crore a year earlier. 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.