Air India must rebuild trust and tighten costs, chairman Chandra says
The airline reported a record 220 billion rupees (S$2.96 billion) loss earlier in 2026.
Air India's chairman, Natarajan Chandrasekaran, emphasized the need for the airline to rebuild trust with passengers and implement tighter financial controls during his first town hall meeting since announcing his departure in February. The goal of his tenure, as Chandrasekaran highlighted, is to turn the airline around.
Chandra acknowledged that the past 18 months had been particularly challenging for Air India, citing geopolitical disruptions, airspace closures, fuel price volatility, and a fatal crash as factors that contributed to the airline's current state. In his address on September 7, he reiterated the importance of regaining trust, executing operations effectively, and maintaining cost discipline.
Last fiscal year saw Air India record a loss of 220 billion rupees, prompting regulatory scrutiny over safety concerns. Following the 2025 crash, the airline faced additional scrutiny after an Airbus SE A320 flight experienced a sudden altitude drop, with the pilot later found to have tested positive for illegal drugs.
To address these issues, Chandrasekaran stressed that Air India's safety record should not only meet but exceed industry benchmarks. The airline, long considered a ten-year turnaround effort, is on the verge of securing a 100 billion rupees financial injection from its owners, Tata Sons and Singapore Airlines. This town hall meeting also marked the official introduction of Tewolde Gebremariam, who steps in as Air India's chief executive and managing director upon regulatory approvals, following a month of discussions with Tata Group leaders.
Notably, Tewolde's background includes leading Ethiopia's national carrier through a transformation that propelled it to become Africa's largest and most profitable airline.
The appointment of Tewolde reflects Tata Group's strategy to bring in seasoned international leadership. However, Air India's continued financial struggles pose a significant challenge for Tewolde. An opposition MP from Singapore has already questioned Singapore Airlines' (SIA) contribution to the Indian carrier, while Noel Tata, chairman of Tata Trusts that controls Tata Sons, has also expressed concerns over Air India's losses.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
