Tata Group has commenced the search for a new Chief Executive Officer for Air India, signaling the end of Campbell Wilson's tenure as the carrier grapples with persistent operational challenges and financial losses. Wilson, whose contract runs until mid-2027, will not be offered an extension as the airline continues to struggle with its turnaround efforts.

Leadership Transition Underway

Tata Chairman N. Chandrasekaran has initiated preliminary discussions with potential CEO candidates who possess experience managing large airlines, particularly those with significant domestic operations. The leadership change reflects growing impatience within the Tata Group regarding Air India's sluggish recovery trajectory since its acquisition from the government.

Operational Challenges Impact Performance

Air India faces significant hurdles in meeting its operational targets, with the carrier unlikely to achieve its March 31 break-even deadline. This missed milestone represents a critical factor in the decision to replace Wilson. The airline's recovery plans suffered a major setback following a Boeing 787 Dreamliner crash in Ahmedabad, with the cause still under investigation.

External Pressures Compound Difficulties

The airline confronts multiple external challenges that have hampered its financial performance:

• Supply chain disruptions affecting aircraft delivery schedules
• Pakistan's airspace closure to Indian carriers, necessitating longer flight routes
• Broader infrastructure and regulatory concerns within India's aviation sector

These factors have contributed to the carrier's struggle to return to profitability despite restructuring efforts.

Industry-Wide Turbulence

Air India's challenges coincide with instability across India's aviation sector. Rival IndiGo recently faced regulatory scrutiny after mass flight cancellations caused by pilot shortages and software issues stranded approximately 500,000 passengers. Together, these two carriers control nearly 90% of domestic seats in the world's third-largest domestic aviation market.

Wilson's Tenure and Mandate

Campbell Wilson, 53, joined Air India in July 2022 from Scoot Airlines after the Tata Group's initial choice, former Turkish Airlines Chief Ilker Ayci, declined the position. Wilson was tasked with comprehensive improvements including enhanced passenger experience through better seating, in-flight entertainment, and food service, while repositioning the airline for sustainable profitability and growth.

The announcement of Wilson's replacement is expected following the release of the official crash investigation report, anticipated by June. This timeline aligns with standard aviation investigation procedures, which typically conclude within one year of an incident.

Air India's board is actively scouting for a new chief executive to replace Campbell Wilson, following intense regulatory scrutiny over safety lapses after a crash that killed 260 people. The search for new leadership has intensified as the airline faces mounting operational challenges and performance concerns under Tata Group ownership.

Leadership Search Accelerates

Tata Group Chairman N Chandrasekaran has been holding discussions with chief executives from leading UK and US-based international carriers as potential candidates to replace Wilson. The leadership transition is being driven directly by the group chairman, who has grown impatient with the pace of execution and improvement at the airline.

Similar leadership changes are expected at Air India Express, the group's low-cost carrier, where current CEO Aloke Singh's term will also end in 2027.

Safety Concerns Drive Leadership Review

In the aftermath of the world's deadliest aviation disaster in a decade, regulators have flagged multiple problems ranging from flying aircraft without emergency equipment checks to delays in replacing engine parts, maintenance record forgery and shortcomings in managing crew fatigue. Multiple senior officials, including Wilson, have received show-cause notices from the Directorate General of Civil Aviation (DGCA) for alleged violations and non-compliance, including operating an aircraft with an expired licence.

Wilson's Mixed Performance Record

Wilson, a New Zealander who joined Air India in July 2022 after a 26-year career at Singapore Airlines, laid out a five-year transformation plan aimed at turning the airline into a global competitor. His tenure has delivered mixed results across various operational areas.

Key Achievements and Challenges

Tata Group was reportedly unhappy with Wilson's performance, despite effectively giving him a blank cheque to fix the airline's problems after its purchase from the Indian government.

Financial Performance Under Pressure

The airline continues to face significant financial challenges as the highest loss-maker in the Tata Group portfolio.

The airline's path to profitability has been significantly impacted by Pakistan's airspace closure, forcing longer routes for international flights, while supply chain challenges have put pressure on service standards and on-time performance.

Strategic Transition Phase

With the critical phase of consolidation, integration, and brand revival following Air India's return to the Tata fold largely in place, Chandrasekaran is seeking greater leadership heft, sharper executional depth, and stronger customer-centric orientation to steer the airline into its next phase of growth and sustained profitability. The conglomerate has invested heavily to modernise the fleet and expand routes, but the airline's turnaround continues to be challenged by operational issues and safety concerns.