Air India crisis deepens ahead of Ahmedabad crash report

The impending release of the Aircraft Accident Investigation Bureau's report on the tragic Air India flight AI-171 crash, which claimed 260 lives shortly after takeoff from Ahmedabad on June 12, 2025, looms large. However, the focus is increasingly shifting to the profound and multifaceted crisis engulfing Air India itself. The airline, now under the stewardship of the Tata Group since 2022, is grappling with a cascade of formidable challenges that threaten to derail its ambitious turnaround strategy.

A significant leadership vacuum has emerged with the mid-term resignation of CEO Campbell Wilson. This departure creates a critical void at a time when Air India desperately needs decisive leadership to navigate the turbulence. Compounding this issue are mounting financial losses, with reports indicating a staggering $2.4 billion loss for the fiscal year ending March 2026. This makes Air India the most significant financial drain within the Tata conglomerate, a fact that has become a growing source of consternation for the Tata board.

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They needed a clear vision right now. Air India had given itself a five-year plan to revamp itself after the privatisation. But one can’t really say that it’s been a happy ride so far. Between their plan and its implementation, there have been big and growing gaps.

Adding to the airline's woes are airspace closures and a Middle Eastern fuel shock, which have further exacerbated its operational and financial difficulties. The safety and operational track record of the airline have also come under scrutiny following a spate of recent incidents. Experts like Jitendra Bhargava, a former executive director at Air India, suggest that the Tatas may have underestimated the complexities of inheriting a legacy carrier and that Wilson struggled to assemble a capable team quickly enough. The situation has led to discussions of cost-cutting measures and warnings of "tough times" for staff, while the deepening involvement of Singapore Airlines, a 25.1% shareholder, is also being closely watched.

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The Tatas had “underestimated the problems they inherited with the legacy carrier”, and Wilson was unable to build a team quickly enough after coming in to set things in order.