Air India board is set to meet on May 7 to review cost-cutting measures, discuss on the selection of new CEO and related matters, sources aware of the development said. Sources stated that the board, chaired by Tata Sons chairman N Chandrasekaran, will meet in Mumbai to deliberate on cost-cutting strategies, CEO succession plans, and financials for the financial year 2026, among other issues.
The Tata Group airline, expected to post losses exceeding Rs 22,000 crore for FY26, faces intensifying challenges on numerous fronts. The losses have escalated to record levels due to frequent airspace closures in West Asia and a permanent closure in Pakistan since March last year, rising fuel expenses and the impact of rupee devaluation against the US dollar.
These challenges exacerbate the repercussions from the tragic Ahmedabad (Flight Al 171) crash on June 12, 2025, which resulted in 241 people on board and 19 people outside losing their lives.
Amid the ongoing challenges and turnaround strategy, Air India CEO and MD Campbell Wilson announced his resignation. He will remain in the role until his successor is announced and in place. According to reports, Air India, in which Singapore Airlines holds a 25.1% stake, is evaluating multiple candidates. As per industry sources, Vinod Kannan, an executive at Singapore Airlines and Nipun Aggarwal, an insider at Air India, have emerged as the primary contenders for the top position.
As part of efforts to reduce costs amid rising jet fuel prices, the airline is considering unbundling meals from tickets and making lounge access optional for business class passengers. However, sources indicated that these measures are still under consideration and no final decision has been taken.
On May 1, Wilson highlighted the pressures facing the airline, stating that a massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate.
He added that the situation leaves the airline with no option but to further trim schedules for June and July. “We very much regret the disruption to our customers' plans and our crew's rosters, and hope that the Middle East situation settles -- and the Strait of Hormuz opens -- soon so that we can get back to a more normal state,” Wilson said in a communication to Air India employees.
Hit by a dramatic rise in aviation turbine fuel (ATF) or jet fuel prices, leading airlines such as IndiGo, Air India and SpiceJet recently told the Centre that they are on the verge of shutting down operations. The Federation of Indian Airlines (FIA), which represents the three airlines, in a letter to the civil aviation ministry is seeking intervention and steps to extend the same fuel pricing mechanism uniformly across both domestic and international operations as was done in the past with the establishment of the crack band.
