Air India turnaround could take up to a decade, owner Tata Sons says
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India’s airline industry has rebounded strongly since the pandemic, but profitability remains under pressure from high costs, supply-chain constraints and fierce price competition.
PHOTO: REUTERS
- Air India's turnaround under Tata Sons could take up to a decade due to supply-chain issues, legacy system overhauls, and the need to build workforce and fleet capacity.
- The airline reported a net loss of 222.38 billion rupees for the financial year ending March 2026, double the previous year's loss.
- Challenges include airspace closures, high fuel costs from Middle East conflicts, and impacts from a 2025 plane crash, affecting profitability amid strong industry rebound.
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India’s Tata Sons said Air India’s turnaround could take up to a decade, extending the timeline for the carrier’s turnaround, chairman N. Chandrasekaran said in the company’s annual report late on July 27.
The comment comes as the country’s second-largest airline grapples with airspace closures, higher fuel costs from the conflict in the Middle East, and the fallout from a deadly plane crash in 2025.
The airline’s turnaround will take time due to persistent supply-chain disruptions in key components, the need to overhaul legacy systems, culture, fleet, and efforts to build a larger technical and airline workforce, Chandrasekaran said.
The revised timeline marks a departure from Vihaan.AI, the five-year plan unveiled in September 2022 by then chief executive and managing director Campbell Wilson. Wilson is set to step down as Air India’s CEO on Sept 30 after serving his notice period. The company is yet to announce a successor.
Air India reported a wider net loss of 222.38 billion rupees (S$3 billion) for the financial year ended March 2026, compared with 108.59 billion rupees a year earlier.
India’s airline industry has rebounded strongly since the pandemic, but profitability remains under pressure from high costs, supply-chain constraints and fierce price competition. REUTERS