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Air India's Troubled Turnaround Tests Tata Leadership
12 Aug
Summary
- N Chandrasekaran will not seek another term as Tata Sons chairman.
- Air India accumulated ₹47,821 crore loss since January 2022.
- Multiple operational and safety incidents plague Air India's recovery.
N Chandrasekaran will not seek another term as Tata Sons chairman when his tenure concludes in February 2027. This decision follows months of speculation, reportedly linked to mounting losses at Air India. Since Tata took control in January 2022, the airline group has incurred approximately ₹47,821 crore in combined losses.
The airline's ambitious transformation, initiated with a large aircraft order and a five-year plan named 'Vihaan.AI', has encountered numerous setbacks. Global supply-chain disruptions, fleet renewal delays, and legacy issues have pushed the projected path to profitability beyond 2032. Recent years have seen recurring operational and safety violations, including DGCA penalties for safety lapses and passenger handling failures.
Further complicating the turnaround are the consolidations of Vistara into Air India and AIX Connect into Air India Express. Geopolitical events and a serious aircraft crash in June 2025 added to the challenges. Management changes are also underway, with a new CEO set to take over, highlighting the ongoing instability.
The airline continues to grapple with operational issues, including a recent incident involving a pilot testing positive for marijuana after a turbulence event on August 4, 2026. These persistent problems have tested the original turnaround promise, making it a prolonged exercise in repairing finances, fleet, workforce, and safety culture.
