Air India Faces Leadership Change and Losses Ahead of Ahmedabad Crash Report

India's Aircraft Accident Investigation Bureau is expected to release its final report within a month on the crash of Air India flight AI-171 that went down shortly after takeoff from Ahmedabad on 12 June 2025, killing 260 people. The airline is operating without a chief executive officer after Campbell Wilson resigned last month.

Losses for the year ending March 2026 reached $2.4 billion, making Air India the largest loss-making company in the Tata Group, which acquired the carrier from the government in 2022. The company board met last week to discuss cost-cutting measures and warned staff of tough times ahead.

Singapore Airlines, which holds a 25.1 percent stake in Air India, sent senior leadership to the Tata Group headquarters in Mumbai in April.

A series of incidents has affected the airline's operations in the past year. In March a flight from Delhi to Vancouver returned to Delhi after nearly eight hours because it lacked regulatory approval to enter Canadian airspace. India's aviation regulator identified 51 safety violations at Air India during its annual audit last year, seven of which were classified at the highest level.

The company has also faced delays in aircraft deliveries due to supply chain issues, disrupting its fleet renewal plans. Several routes have been cut since 2024, including services between Delhi and Washington and between Mumbai and San Francisco. The Indian rupee has depreciated more than 10 percent against the U.S. dollar, increasing costs because a large share of the airline's expenses, including fuel, are dollar-denominated.

Airlines will need to provide additional funding to cover the losses, according to aviation analyst Mahantesh Sabarad. He compared the scale of the current losses to those faced by the Tata Group after its acquisition of Corus Steel nearly two decades ago.

The final crash report could affect the airline's reputation depending on its findings. Liabilities related to the crash have largely been covered and no major additional financial costs are anticipated from the report. The Middle East conflict had created an opening for Air India to expand international operations as Gulf carriers faced constraints, but limited aircraft availability has prevented the carrier from capitalizing on the opportunity.