Tata Group chair tells workers Air India faces challenging time

[MUMBAI] Tata Sons chairman Natarajan Chandrasekaran warned employees on Friday (Apr 10) that Air India is navigating a “challenging time”, as the carrier struggles to reverse record losses and fix persistent operational failures.

“Air Indians have shown great tenacity in dealing with a perfect storm, and we must continue with the same spirit that has been demonstrated,” Chandrasekaran said during a meeting with employees at Air India Group’s headquarters in Gurugram.

“While our future is bright and we have laid a solid foundation for our ambition, we are going through a challenging time, the impact of which is most visible in the airline industry, “ he said.

The Air India employees’ meeting was called with the carrier at a critical juncture, as it prepares to report its widest-ever annual loss and for the departure of CEO Campbell Wilson. The airline’s recovery has been slowed by integration costs after the merger with Vistara and reliability issues that continue to weigh on performance despite an aggressive fleet expansion.

“What matters now is staying focused on execution,” Chandrasekaran said. “Our focus should be on what is within our control, where we can improve, be precise on costs and remain grounded in the reality of the situation.”

External shocks are bruising Air India’s bottom line. A fatal crash, surging fuel prices and detours around banned Pakistani airspace have sent costs soaring. These pressures, worsened by reroutes due to Middle East conflicts, are extending flight times and blunting the airline’s edge on key US and European routes, threatening to derail its multiyear turnaround.

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“The Tata Group remains committed to Air India group,” the chairman said. “The board is fully supportive and will continue to work closely with the management team.” BLOOMBERG