Air India losses mount as crash report looms

International

By Patricia Andrea Pateña-Matheu

TURBULENCE is building at Air India as it awaits a key crash report, while leadership gaps and mounting losses deepen pressure on the carrier.

With the final investigation into last year’s deadly crash due within weeks, attention is fixed on the Aircraft Accident Investigation Bureau (AAIB) report on the 12 June 2025 accident involving Air India flight AI-171, which was bound for London and crashed seconds after take-off from Ahmedabad.

The disaster killed 260 people and remains one of the most closely watched aviation investigations in India in recent years.

Even as families and regulators await answers, Air India is dealing with overlapping internal and external pressures that have complicated its post-privatisation turnaround under the Tata Group.

Chief executive Campbell Wilson stepped down midterm last month, coinciding with reported losses of $2.4bn for the financial year ending March 2026, placing the carrier’s financial trajectory under renewed scrutiny.

The airline remains the Tata Group’s largest loss-making entity, with board-level discussions reportedly focusing on cost control and warnings of “tough times” for staff.

Attention has also turned to Singapore Airlines, which holds a 25.1% stake, after senior executives visited Tata headquarters in Mumbai in April, fuelling speculation about deeper involvement in strategy or operations.

Aviation analyst Jitendra Bhargava said the leadership gap has left Air India without sufficient direction at a critical moment. He said in a BBC report, “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.”

He also pointed to inherited structural issues and delays in building a strong management team as key constraints.

Operational and safety concerns have added further strain. In March, an Air India flight from Delhi to Vancouver returned after nearly eight hours due to lack of approval to enter Canadian airspace, which the airline attributed to operational reasons.

Industry expert Alok Anand called the situation “highly unusual and shows there was definitely a breakdown of process somewhere”. India’s aviation regulator has also identified 51 safety violations in an annual audit, including seven in the most serious category.

External pressures have compounded difficulties. Aircraft delivery delays, shrinking international routes, and a rupee that has weakened more than 10% against the US dollar have all increased cost pressure, particularly on fuel and leasing.

Analysts say shareholder support from Tata Group and Singapore Airlines may be required if losses persist, while reputational risks tied to the upcoming crash report could further shape the airline’s recovery trajectory.(MyTVCebu)