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Tue, 12 May 2026

Tue, 12 May 2026 Air India crisis deepens ahead of final Ahmedabad crash report

Air India faces a leadership vacuum and mounting financial losses as it struggles to recover from the crash.
Air India, India's national carrier, is facing severe challenges as it prepares to release its final report on the 2025 plane crash that killed 260 people. The airline has been plagued by leadership vacuum, mounting financial losses, airspace closures, and fuel shortages, raising questions about its turnaround plan. Air India's CEO Campbell Wilson resigned last month, leaving a void at the helm of the carrier. Aviation experts say Wilson's exit is a blow to the airline's plans to revamp itself after privatization. The Tata Group, which acquired Air India in 2022, is facing growing consternation over the carrier's performance. The airline has reported losses of $2.4 billion for the year ending March 2026, making it the biggest loss-making entity within the Tata Group. Singapore Airlines, a major shareholder, has increased its involvement in Air India, sparking speculation about deeper investment. Aviation experts point to several factors that have compounded Air India's troubles, including internal and external challenges such as supply chain shortages, currency depreciation, and route closures. The carrier has also faced criticism over safety violations and operational lapses, including a recent incident where one of its flights returned to Delhi after flying for nearly eight hours due to lack of regulatory approval. To mitigate the crisis, experts say the Tatas and Singapore Airlines will need to infuse more money into the carrier to fund mounting losses. Aviation analyst Mahantesh Sabarad suggests that shareholder support is required, and the Tatas should explore innovative financing arrangements to help Air India recover from its financial challenges. However, things could get worse for Air India before they begin looking up in terms of their financial performance, warns Acumen Aviation consultancy's Alok Anand. The ongoing conflict in the Middle East has weakened the stranglehold of Gulf carriers, but it remains a missed opportunity for Air India due to availability constraints. The final investigation into last year's deadly crash is expected to reveal potentially damaging findings that could further damage the airline's reputation and impact its finances.