For the next Tata Sons chairman, Air India is likely to be one of the most consequential unfinished projects inherited from N Chandrasekaran. The group has put in place the building blocks of a global airline through the acquisition of Air India, merger with Vistara and a more than 500-aircraft order, but the challenge now is to make the investment deliver financially.
The scale of that challenge is evident from Air India’s latest financials. Air India and Air India Express together reported a net loss of Rs 22,238 crore in FY26, more than double the previous year, even as the group continued to spend on fleet renewal, cabin refurbishment, technology and integration. Chandrasekaran has said the turnaround should be viewed as a five-to-10-year journey rather than one measured in quarters.
The incoming Tata Sons chairman will therefore have to decide how aggressively to pursue the original expansion plan while putting greater emphasis on operational efficiency and profitability. Air India’s nearly 600-aircraft orderbook is due to translate into a significant increase in capacity from 2027, making the next few years critical in determining whether the new fleet can generate adequate returns.
This will also involve managing the pace of deliveries and network expansion amid an unusually difficult operating environment. Airspace restrictions and high jet fuel prices have already forced Air India to rationalise several international routes, while delays in aircraft deliveries and cabin retrofits have constrained capacity.
The leadership transition at the airline adds another layer. Former Ethiopian Airlines chief Tewolde Gebremariam has been appointed Air India’s CEO, replacing Campbell Wilson, who is set to step down by September 30. Gebremariam is taking charge at a stage when the initial rebuilding of the airline’s systems, fleet and organisation has largely begun, but the harder task of making the enlarged airline commercially sustainable lies ahead.
For Chandrasekaran’s successor, the question will thus not be whether to continue the Air India transformation, but how to balance growth with financial discipline as the airline moves into its next phase. The successor will inherit a business where the capital has already been committed and the strategic direction broadly set, but where the returns from that bet are still some years away.