Chandrasekaran has called for closer coordination across the airline’s departments. Key divisions such as flight operations, commercial strategy and finance have been directed to submit weekly progress reports directly to the chairman, according to people familiar with the matter. The aim is to ensure stability until the appointment of a new CEO, they said.
Chandra has appointed former civil aviation secretary Pradeep Singh Kharola as executive advisor. He will be part of the management team and his experience will be invaluable in ensuring smooth leadership transition, Wilson said in an internal memo that was reviewed by ET. Tata Sons did not comment.
No Consensus Yet over CEO Name
Chandrasekaran’s intervention underscores the importance of Air India’s multi billion-dollar turnaround strategy for India’s biggest conglomerate. The airline, which Tata acquired through privatisation in 2022, has had to contend with a plane crash that killed 260 last year, surging costs due to the Iran war that’s forced flight cancellations, and an interior refit programme that’s lagging.
Wilson’s unexpected resignation came as the carrier is struggling to maintain the momentum of its aggressive fleet expansion plan and service upgrades. While chief commercial and transformation officer Nipun Aggarwal and former Vistara chief executive Vinod Kannan remain in the race for the CEO’s position, there is no consensus within Tata group’s top echelons, said the people cited above.
Air India executives said indecision over the CEO’s position is holding up key business decisions and lowering the morale of employees.Air India appoints former civil aviation secretary as advisor to chairman
“The chairman has a mandate of running multiple group companies and cannot be expected to run a business like aviation, which needs hands-on approach,” said one of them. “The company needs to appoint a CEO fast and empower him fully to run the company.”
Air India has also been the subject of intense discussions at recent Tata Sons board meetings, with Noel Tata, chairman of the Tata Trusts, raising the matter of its increasing losses — Rs 27,000 crore in FY26. That forced a further infusion of funds from Tata group and 25.1% co-owner Singapore Airlines.
Akasa Air eyes 30% capacity growth in FY27
The airline has cut over 350 daily flights as jet fuel prices have shot up due to the West Asia conflict. The impact is heavier on the airline compared with rival IndiGo as closure of Pakistani airspace has forced Air India’s Europe and North America flights to take longer routes, sharply increasing fuel consumption and crew costs.
The board is currently taking another look at its aircraft delivery pipeline, though any deferment in the near term is unlikely as this will attract a penalty from manufacturers. The airline will take delivery of seven more wide-body aircraft in FY27 while budget arm Air India Express will induct around 10 Boeing 737 Max planes in this fiscal.
There will be capacity rationalisation, with older planes being retired faster as they consume more fuel, executives said.