Air India May See CEO Change as Tata Sons Reviews Leadership, Explores Global Candidates

Air India may be heading toward a leadership transition as Tata Sons reviews the top management of its airline businesses, sparking speculation that Chief Executive Officer Campbell Wilson could exit before the end of his current term in 2027. The review is part of a broader effort by the Tata Group to accelerate operational improvements and stabilise financial performance at the national carrier.

According to reports, Tata Sons chairman N Chandrasekaran, who also serves as chairman of Air India, has held discussions with senior executives from at least two major international airlines based in the UK and the United States. These conversations are understood to be exploratory, aimed at assessing potential leadership options as the group evaluates its long-term strategy for the airline.

Sources indicate that Chandrasekaran is not fully satisfied with the pace of execution and visible transformation at Air India since its return to the Tata fold. While significant milestones have been achieved, concerns remain over delays in operational improvements, customer experience and financial recovery. Similar leadership assessments are reportedly underway at Air India Express, where the current CEO’s tenure is also set to conclude in 2027.

Wilson, who joined Air India in July 2022, unveiled a five-year turnaround plan focused on fleet modernisation, service quality, brand revival and financial stability. Under his leadership, the merger of Vistara into Air India was completed without major disruption, and the airline expanded capacity across domestic and international routes. In select metro markets, Air India briefly overtook IndiGo in market share, signalling early competitive gains.

However, the broader transformation has faced significant hurdles. Global supply chain disruptions have delayed aircraft deliveries and refurbishment schedules, affecting service quality and on-time performance, particularly on long-haul routes to Europe and North America. Persistent technical issues involving wide-body aircraft have further added to operational pressure.

Wilson has publicly acknowledged these challenges, citing delays in the delivery of new aircraft critical to the airline’s renewal plans. The lack of timely fleet induction has limited Air India’s ability to fully execute its service upgrade strategy.

The airline has also faced heightened scrutiny following a fatal crash in Ahmedabad last year that claimed 260 lives. While preliminary investigations did not attribute the incident to aircraft design flaws or maintenance lapses, senior government officials reportedly engaged directly with Tata Group leadership rather than Air India’s management during the aftermath, a development seen as weakening Wilson’s standing.

Regulatory pressure has compounded the situation. Senior Air India executives, including Wilson, have received show-cause notices from the Directorate General of Civil Aviation over alleged compliance lapses, including one case involving the operation of an aircraft with an expired licence.

Financial stress remains a major concern. Extended flight routes due to Pakistan’s airspace restrictions have raised fuel and operational costs. In FY25, Air India and Air India Express together reported losses of ₹10,859 crore on revenues of ₹78,636 crore, making them the largest loss-making entities within the Tata Group.

With consolidation and brand revival largely completed, Tata Sons is now focused on driving profitability and operational discipline. The leadership review signals a shift toward the next phase of growth, where execution speed and cost control are expected to take precedence.