AIR INDIA is facing growing financial and operational pressure ahead of the final report into the crash of London-bound flight AI-171, which went down shortly after take-off from Ahmedabad on June 12, 2025, killing 260 people.
The Aircraft Accident Investigation Bureau is expected to release its final findings next month. BBC reported that the airline is dealing with leadership issues, financial losses, route cuts and safety concerns as scrutiny of the carrier increases.
Air India chief executive Campbell Wilson resigned last month as the airline’s losses for the year ending March 2026 reportedly reached $2.4 billion. Air India, taken over by the Tata Group in 2022, is now the group’s biggest loss-making business.
According to local media, Tata Group’s board recently discussed cost-cutting measures and warned staff of “tough times”. The visit of senior Singapore Airlines leaders to Mumbai also led to speculation about deeper involvement by the airline, which holds a 25.1 per cent stake in Air India.
Air India's £2bn Loss Crisis Could Mean Bigger Cost Cuts
“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,” former Air India executive director Jitendra Bhargava told the BBC.
Air India has also faced operational lapses and safety violations. Last year, India’s aviation regulator found 51 safety violations during an audit. In March, an Air India flight from Delhi to Vancouver returned after nearly eight hours because it lacked approval to enter Canadian airspace.
Aviation analysts told the BBC that delayed aircraft deliveries, route closures, rising fuel costs and the weakening rupee have added to the airline’s problems.
Experts also said the final crash investigation findings could further affect Air India’s reputation.
