Tata Sons committed to Air India: N Chandrasekaran

New Delhi: Tata Sons is steadfast in its commitment to Air India, chairman N Chandrasekaran told employees on Thursday, days after the airline's chief executive Campbell Wilson resigned. He said the salt-to-steel conglomerate will continue to back Air India as it transitions through the current difficult phase.

"The Tata Group remains committed to Air India group," Chandrasekaran said at a town hall at the airline's Gurugram headquarters. "The Board is fully supportive and will continue to work closely with the management team," he said, according to a transcript of the speech shared by the airline's spokesperson with ET.

Wilson's departure has drawn attention to the challenges facing loss-making Air India, which the Tata Group reacquired from the Indian government in 2022 after decades of state ownership. The airline has since been integrating operations, expanding its fleet and competing against IndiGo, which dominates the Indian market with more than 60% share.


Chandrasekaran told the staff that the carrier is facing a "challenging time" and urged them to focus on cost discipline and execution. "What matters now is staying focused on execution," he said. "Be precise on costs and remain grounded in the reality of the situation."

Chandrasekaran listed progress made since the acquisition-hiring of over 17,000 employees, consolidation of four airlines into two, fleet expansion, and refurbishment, while pointing out that more work remained.

On safety, he termed it as "non-negotiable."

Air India competes on international routes with carriers such as Emirates, Qatar Airways, and Lufthansa, while facing pressure domestically from low-cost rivals. The airline has yet to turn profitable since the Tata acquisition.

The airline, like its peers, is battling challenging times as the Iran war has upended its international business. It is losing cash due to elevated jet fuel prices while being forced to fly longer routes due to airspace closures over Pakistan and the Gulf.