Tata Sons might be considering swapping out the leadership at Air India as it assesses the situation in its aviation segment that is marred by operational difficulties, delayed executions, and increased losses.
The Economic Times reports that Tata Group’s Chairman N. Chandrasekaran, who is also the Chairman of Air India, has already started conversations with the CEO’s of leading airlines in the UK and the US as potential replacements for the present CEO Campbell Wilson. Although Wilson’s contract extends till June 2027, the rumors about a possible changeover of leadership have surfaced quite early. A similar atmosphere prevails at Air India Express where the present CEO Aloke Singh is also due to end his term in 2027.
Chandrasekaran has reportedly held regular performance reviews with Wilson in recent months. A spokesperson for Wilson’s team confirmed his communication to the board about his remaining tenure of 2027 being not longer than that. Tata representatives on their part stated that no official board talk has occurred and that the chairman himself is the one directing the succession planning.
A New Zealander, Wilson, who became the CEO in 2022 started with a five-year transformation program. The first step of this plan was to make the airline’s brand more attractive, to improve service quality, and to make the airline a global player. Some progress has been made already: Vistara has been merged with Air India, and the airline has added flights to some of its key metro routes, making it bigger than IndiGo at times.
At the same time, the whole transformation process has been slowed down because of the global supply chain disruptions which are causing delays in the delivery of new planes and refurbishment of old ones, resulting in lower service quality and less punctuality in long-haul routes. Wilson reportedly said, “We should have received 28 brand new aircraft by now. But the actual number we have received is zero.”
Operational and regulatory pressures have further complicated the airline’s progress. After the Ahmedabad crash last year that claimed 260 lives, senior government officials reportedly engaged directly with Tata leadership rather than Wilson. Additionally, Wilson and other senior executives have received DGCA show-cause notices over alleged non-compliance issues, including operating an aircraft with an expired license.
Financial strain has also intensified, with Air India and Air India Express posting a combined loss of ₹10,859 crore in FY25 on revenue of ₹78,636 crore, making them the largest loss-making entities within the Tata Group. Airspace restrictions following Pakistan’s closure have further increased operational costs.
With consolidation and brand revival largely complete, Chandrasekaran is now reportedly seeking a CEO with stronger operational expertise and customer focus to guide Air India towards sustainable profitability and growth in the next phase of its transformation.
