Highlights
- Tata Sons holds talks with senior leaders from major UK and US airlines for possible succession to Campbell Wilson.
- Air India and Air India Express report combined losses of Rs 10,859 crore in FY25 despite merger and fleet expansion.
- Wilson's term runs until June 2027, but leadership change could happen sooner, says Economic Times report.
Tata Sons has begun searching for a new chief executive at Air India as the conglomerate reviews its airline leadership amid concerns over the pace of transformation and mounting financial losses.
Group chairman N Chandrasekaran has held discussions with chief executives of at least two large airlines based in the UK and the US as part of a wider search for possible successors to current Air India CEO Campbell Wilson, The Economic Times reported.
Sources quoted by the newspaper said Chandrasekaran, who is also chairman of Air India, is not fully satisfied with the pace of execution and on-ground changes at the airline. While Wilson's current term runs until June 2027, the airline could see a leadership change before that.
Similar reviews are under way at Air India Express, where CEO Aloke Singh's tenure is also set to end in 2027. Tata Sons is assessing leadership needs across all its airline businesses.
Wilson, a New Zealander who joined Air India in July 2022, announced a five-year transformation plan to rebuild the airline and improve its financial health.
During his tenure, key milestones were achieved, including the smooth merger of Vistara into Air India and significant fleet expansion. At times, Air India even overtook market leader IndiGo on certain metro routes.
Operational financial challenges
However, the overall results have been mixed. Global supply chain problems have slowed the turnaround plan, with delays in aircraft deliveries and refurbishment affecting service quality and on-time performance, particularly on long-haul routes to Europe and North America.
Wilson pointed to supply chain delays, stating "We should have received 28 brand new aircraft by now. But the actual number of new aircraft designed by and for Air India that we have received is zero."
Air India has also faced scrutiny following the Ahmedabad crash last year that killed 260 people. While a preliminary probe did not point to faults in the aircraft or Air India's engineering practices, the Economic Times said that senior government officials chose to engage directly with Tata Group's top leadership instead of Wilson after the incident.
The airline's senior leadership, including Wilson, has received show-cause notices from the Directorate General of Civil Aviation for alleged violations, including operating an aircraft with an expired licence.
Financial stress has further compounded challenges. Pakistan's airspace closure has forced longer flight routes, pushing up costs.
Air India and Air India Express together reported losses of Rs 10,859 crore in FY25 on revenue of Rs 78,636 crore, making them the biggest loss-making companies within the Tata Group.
