Air India must rebuild trust, tighten costs after record US$2.3 billion loss: chairman
Natarajan Chandrasekaran’s remarks signals strategic importance he continues to place on Air India’s revival
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AIR India must regain fliers’ trust and tighten financial discipline, chairman Natarajan Chandrasekaran said at his first town hall since announcing he will step down in February, underscoring the airline’s turnaround as a key goal of his tenure.
Chandra, as he is commonly known, told employees the airline is entering a critical phase after a turbulent 18 months marked by geopolitical disruptions, airspace closures, fuel volatility and a fatal crash.
His remarks on Monday (Sep 7) signalled the strategic importance he continues to place on Air India’s revival even as he prepares to hand over leadership of Tata Sons – the holding company of the sprawling Tata Group.
He said Air India must now prioritise “customer trust, operational execution and cost discipline,” following a record 220 billion rupees (US$2.3 billion) loss last fiscal year and regulatory scrutiny over safety-related issues.
While 2025’s crash dealt a blow to Air India’s safety reputation, the carrier has since faced fresh scrutiny after a recent Airbus SE A320 flight suffered a sudden altitude drop, with the pilot later testing positive for illegal drugs.
“Our safety record should not just match the best airlines in the world – it should be better than the best,” he said.
The airline – whose turnaround Chandra previously described as a decade-long effort – is close to securing 100 billion rupees in financial aid from its owners Tata Sons and Singapore Airlines.
The town hall also marked the formal introduction of Tewolde Gebremariam, who joins Air India after a month of meetings with Tata Group leadership and will become chief executive officer and managing director following regulatory approvals.
His appointment reflects Tata’s intent to bring in globally seasoned leadership: at Ethiopian Airlines Group, Tewolde led its transformation into Africa’s largest and most profitable carrier.
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The airline’s mounting losses will be a key challenge for Tewolde. Already, an opposition MP from Singapore has questioned SIA’s funding to the Indian carrier, while Noel Tata, the chairman of Tata Trusts that controls Tata Sons, has also raised concerns over the losses at Air India. BLOOMBERG
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