Chandrasekaran says Air India is going through a challenging period

Tata Sons Chairman N. Chandrasekaran, speaking at an Air India employee town hall, said that the airline is going through a challenging period, The Economic Times reported on Friday.

Chandrasekaran urged staff to focus on execution and stay grounded in reality.

“While our future is bright and we have laid a solid foundation for our ambitions, we are going through a challenging time, the impact of which is most visible in the airline industry,” he said.

"The Tata Group remains committed to the Air India group. The Board is fully supportive and will continue to work closely with the management team," Chandrasekaran said.

Air Indians have shown great "tenacity" in dealing with a perfect storm, and "we must continue with the same spirit that has been demonstrated," he said.

Air India’s chief executive officer (CEO) Campbell Wilson formally resigned last week after mounting losses at the airline. The carrier, which was handed over to the Tata group in 2022, is facing additional challenges from the conflict in West Asia, which has forced the cancellation of a number of flights due to airspace restrictions, while long-haul flights to WENA nations have pushed up time and costs due to the longer route they have to take. While Indian carriers have been somewhat insulated from runaway aviation turbine fuel (ATF) costs, they still have to pay more than usual

Air India has also been under a cloud since a crash that killed 260 people in Ahmedabad last year, as well as subsequent gaps found in aircraft maintenance as well as flight operations.

“What matters now is staying focused on execution. Our focus should be on what is within our control—where we can improve, be precise about costs, and remain grounded in the reality of the situation,” Chandrasekaran was quoted as saying.

Since Wilson’s appointment in 2022, the airline has undergone major changes, including the merger of full-service airlines Air India and Vistara, as well as the merger of low-cost carriers Air India Express and AIX Connect (formerly AirAsia India) in 2024.

Air India saw cancellations for 13 per cent of its total international flights in March compared with only 2 per cent cancellations in February due to West Asia conflict.