Outgoing Air India boss warns successor of mounting crises

Air India chief executive Campbell Wilson has said his successor will inherit a difficult operating environment, warning that the airline continues to face significant geopolitical, financial and operational pressures.

Speaking at an event in New York, Wilson said he would step down from his role within the next two months and acknowledged that the challenges confronting the carrier remained substantial despite progress made in recent years.

“The next four years will be just as challenging as the past, albeit in a different way,” Wilson said, adding that he hoped to ensure a smooth leadership transition and help place the “right person” at the helm of the airline.

Among the biggest concerns highlighted by Wilson were the continued closure of Pakistan’s airspace to Indian carriers and disruptions caused by the ongoing Iran conflict, both of which have significantly altered flight operations and increased costs.

Air India has been forced to reroute several international services, particularly those connecting India with Europe and North America. According to Wilson, flights that once took around eight-and-a-half hours are now stretching to nearly 12 hours because aircraft can no longer use large parts of Gulf airspace.

The longer flight paths have added to the airline’s financial strain at a time when fuel prices have surged. Wilson said fuel costs had doubled from earlier levels and now accounted for a far larger share of operating expenditure following the escalation of tensions linked to the US-Iran conflict.

Air India recorded a staggering $2.8 billion (around Rs 26,798 crore) loss in FY2025–26 — its worst financial performance since the Tata Group takeover — amid mounting pressure from airspace curbs, the Iran conflict, soaring fuel costs and disruptions in global aircraft supply chains.

The airline has also reduced frequencies on some of its most profitable international routes due to operational constraints and rising costs.

Air India’s leadership transition comes amid a turbulent period for the carrier. The airline has reported significant financial losses, faced repeated scrutiny over safety standards and dealt with the aftermath of a fatal Boeing 787 Dreamliner crash in June 2025 that claimed hundreds of lives.

In recent months, the airline has also been reprimanded over safety lapses, including operating aircraft without valid airworthiness certification and failing to complete mandatory emergency equipment checks, according to reports.

The ongoing instability in West Asia has further disrupted operations. Air India reportedly cancelled around 2,500 flights to the Middle East over a three-week period during the Iran conflict, operating only a fraction of its usual regional schedule.

Wilson said the incoming chief executive would not only need to manage immediate disruptions but also oversee the airline’s ambitious expansion plans, including integrating new aircraft and scaling up operations globally.

“The platform has been laid,” he said, noting that the carrier would soon begin operating at a much larger scale as more aircraft entered service.

With IANS inputs