Tata Group wants to replace the CEO of Air India because it is dissatisfied with the rate of change: Report


Tata Sons has initiated an internal review that could lead to a change at the top of its airline business, with indications that Air India may see a new chief executive in the near future, according to a report by The Economic Times. The review is said to include conversations with senior leaders from major international airlines as the group reassesses its leadership structure and long-term strategy for its aviation ventures.

As part of this process, Tata Sons chairman N Chandrasekaran has reportedly held discussions with the chief executives of at least two large airlines headquartered in the United Kingdom and the United States. People familiar with the matter said these interactions are exploratory in nature and form part of a broader effort to identify potential successors to the current Air India chief executive, Campbell Wilson.

The leadership review is understood to stem from concerns within the group about the speed and effectiveness of execution at Air India. While Wilson’s contract formally runs until June 2027, sources cited by the report suggest that a transition could take place earlier if the group believes the airline requires a different leadership approach in its next phase of growth. Similar assessments are reportedly under way at Air India Express as well, with Tata Sons evaluating leadership requirements across its entire airline portfolio.

According to people aware of the situation, Chandrasekaran has been conducting regular performance review meetings with Wilson over recent months. Tata Sons has declined to comment publicly on the matter. A person close to Wilson was quoted as saying that he is aware of succession planning discussions and has indicated to the board that he may not wish to continue beyond 2027. However, group officials have disputed this account, stating that no such board-level discussion has taken place and that the ongoing review is being driven directly by the chairman.

Wilson, who joined Air India in July 2022, had outlined a five-year transformation programme aimed at reviving the airline’s brand, improving service quality, and restoring financial health after years of decline. During his tenure, some major milestones were achieved, including the smooth merger of Vistara into Air India and a significant expansion of fleet size and network capacity. On certain high-traffic metro routes, Air India even managed to overtake market leader IndiGo for brief periods.

Despite these achievements, the overall turnaround has delivered mixed outcomes. Persistent global supply chain disruptions have slowed the transformation plan, delaying the delivery of new aircraft and the refurbishment of older planes. These constraints have affected operational reliability, particularly on long-haul routes to Europe and North America, where the airline has faced service quality issues and repeated technical problems with wide-body aircraft. Wilson himself has acknowledged these challenges, noting that although Air India was supposed to receive 28 new aircraft by now, it had not received a single plane specifically designed and delivered for the airline due to ongoing supply bottlenecks.

Air India has also faced heightened scrutiny following last year’s Ahmedabad crash that claimed 260 lives. While preliminary investigations did not find faults with the aircraft or the airline’s engineering standards, the report noted that senior government officials chose to engage directly with the Tata Group’s top leadership rather than Wilson in the aftermath. This shift in engagement is widely seen as having influenced perceptions of his standing within the organisation. In addition, Air India’s senior management has received show-cause notices from the Directorate General of Civil Aviation over alleged regulatory lapses, including an incident involving the operation of an aircraft with an expired licence.

Financial pressures have further complicated the airline’s recovery. The closure of Pakistani airspace has forced longer flight routes, increasing fuel consumption and operating costs while weighing on profitability. In FY25, Air India and Air India Express together reported losses of Rs 10,859 crore on revenues of Rs 78,636 crore, making them the largest loss-making entities within the Tata Group.

With major integration tasks and brand consolidation largely completed since Air India returned to Tata ownership, Chandrasekaran is now believed to be focused on positioning the airline for its next stage of growth. The ongoing leadership review reflects an effort to ensure that the management team is aligned with the group’s expectations as it seeks to stabilise operations, improve financial performance, and compete more effectively on the global aviation stage.




 

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