Chandrasekaran, Kharola To Steer Air India As New CEO Search Drags On

Air India's next chief executive is unlikely to be named for a few months, and Tata Sons Chairman N Chandrasekaran has now put together an interim panel to run the airline in the meantime, according to a report by the Economic Times.

The delay comes after opposition from several quarters, including Tata Trusts chairman Noel Tata, to the proposed elevation of Nipun Aggarwal to the top post. Aggarwal was in line to take over from Campbell Wilson, who is stepping down as CEO.

Former Air India CMD Pradeep Singh Kharola, along with Chandrasekaran and other senior executives, will make up the interim committee, the report said. Wilson is set to exit in September, and the airline will continue an informal search for a permanent successor even after that.

Aggarwal, however, remains a serious contender for the role despite the pushback, the report said. He has served as Air India's chief commercial officer since 2022, handling fleet expansion, sales, marketing and network planning. Before this, he held senior positions at Tata Sons, Bank of America Merrill Lynch, Standard Chartered Bank and BP.

Kharola's mandate is to tighten operations and execution, while Chandrasekaran will concentrate on quality control and pushing the airline towards profitability. Kharola is also likely to crack down on lapses tied to negligence and fleet upkeep, the report added.

"An airline is a people-centric business, whether it is employees, cabin crew or customers," an executive cited by the publication said.

Kharola took charge as executive adviser to Chandrasekaran in June, a move that came as the airline shored up its leadership ahead of the transition. Chandrasekaran has since begun holding weekly review meetings on Air India's performance, and departments such as flight operations, commercial and finance now submit weekly reports to him, the report said.

Widening Losses Add Pressure

Air India's mounting losses have come up repeatedly at recent Tata Sons board meetings, with Noel Tata flagging the issue directly, the report said.

Co-owner Singapore Airlines' FY26 annual report shows Air India's revenue more than doubled to S$10.53 billion (₹77,800 crore), up from S$4.55 billion (₹33,600 crore) the previous year, a jump largely tied to the Vistara merger that closed in November 2024. Losses after tax, however, widened sharply to S$3.77 billion (₹27,800 crore) from S$288.4 million (₹2,130 crore) a year earlier.

This has pushed both Tata Group and Singapore Airlines to inject fresh capital into the carrier. Tata holds a 74.9% stake in Air India, which was privatised in 2022, while Singapore Airlines owns the remaining 25.1%.

Rising jet fuel costs following the West Asia conflict have forced the airline to cut more than 350 daily flights. Flights to Europe and North America now take longer routes because Pakistani airspace remains closed, pushing up both fuel and crew costs, the report said.

The Tata Sons board is reviewing Air India's aircraft delivery schedule, though a near-term deferment looks unlikely since it would trigger manufacturer penalties. The airline expects seven more wide-body aircraft in FY27, and budget arm Air India Express plans to induct about 10 Boeing 737 Max jets.

Singapore Airlines noted in its annual report that Air India continues to grapple with supply chain delays affecting aircraft deliveries and cabin retrofits, along with high fuel prices and India-specific constraints, including limited access to key Gulf routes.