Persistent Losses Push Tata Group to Search for New Air India CEO.

The Tata Group has begun a global search for a new Chief Executive Officer (CEO) for Air India, according to recent reports.

The move signals dissatisfaction with the pace of the carrier's recovery under current CEO Campbell Wilson. Mr. Wilson's contract is set to run until June 2027, but a leadership change could happen sooner. Tata Sons Chairman N. Chandrasekaran is reportedly leading the discussions. He has spoken with executives from major international airlines as potential successors.

Financial Pressures and Missed Targets

Financial performance is a significant factor in the search for new leadership. The Air India turnaround plan, known as Vihaan.AI, is facing major headwinds. The airline is unlikely to meet its internal goal of breaking even operationally by March 31.

Air India's consolidated net loss surged by 48% year-on-year in Fiscal Year 2025 (FY25). The loss reached ₹10,859 crore (approximately $1.2 billion). This makes the airline the largest loss-maker within the entire Tata Group. The losses occurred despite a rise in revenue to ₹78,636 crore during the same period.

While the full-service carrier showed some positive momentum, the overall financial picture remains challenging. The group aims for long-term financial stability by 2027.

Operational and Safety Scrutiny

The leadership change comes amid intense scrutiny from regulators and the public. This scrutiny was heightened by the fatal Air India Flight 171 crash in June 2025. The crash involved a Boeing 787-8 Dreamliner shortly after takeoff from Ahmedabad. The disaster resulted in 260 total fatalities, including 19 people on the ground.

A preliminary report from India's Aircraft Accident Investigation Bureau (AAIB) provided key details. It revealed that the engine fuel control switches moved from 'RUN' to 'CUTOFF' after liftoff. This action caused an immediate loss of thrust in both engines. The final cause of the switch movement is still under investigation.

In the crash's aftermath, the Directorate General of Civil Aviation (DGCA) flagged multiple operational lapses. These concerns included delays in replacing engine components and falsification of maintenance records. The DGCA also noted shortcomings in monitoring crew fatigue.

The Challenge of Transformation

Mr. Wilson joined Air India in July 2022 from Singapore Airlines' low-cost arm, Scoot. His mandate was to improve the passenger experience and reposition the airline for growth. Air India is 25.1% owned by Singapore Airlines Ltd., which is helping with restructuring efforts.

External challenges have also impacted the recovery. Global supply chain disruptions have delayed the delivery and refurbishment of new aircraft. This has strained the operational performance of the long-haul fleet. Additionally, the closure of Pakistani airspace forces longer, more costly routes for the carrier.

India's aviation market is the world's third-largest domestic segment. The troubles at Air India and its rival, IndiGo, raise concerns. These issues suggest that India's infrastructure may not be ready for rapid growth. The search for a new leader underscores the Tata Group's commitment to accelerating the transformation. The goal is to guide the carrier toward sustained profitability and global competitiveness. For more commercial aviation news, visit flying.flights.