Air India Turnaround To Take Five To Ten Years: Chandrasekaran

Tata Sons chairman N Chandrasekaran has told shareholders that the turnaround of Air India will take up to a decade, as rising losses and supply chain delays weigh on the group's aviation business, according to reports.

In his statement accompanying Tata Sons' FY26 annual report, Chandrasekaran described the airline's revival as a long-term process that will require sustained investment and patience. "Given where it began, Air India's transformation must be seen as a five to ten year journey," he reportedly wrote. He cited delays in aircraft components, ageing technology systems and the need to build a stronger technical workforce as key challenges facing the airline.

Losses Widen Sharply

The comments come as Air India's finances remain under pressure. The airline, which merged operations with Vistara and integrated low-cost arm Air India Express, reported a net loss of over ₹22,000 crore for FY26, more than double the ₹10,859 crore loss recorded in FY25. Tata Group had taken over Air India from the government in January 2022.

Chandrasekaran attributed part of the widened losses to external disruptions during the year. "This year, Air India faced three external headwinds: air space closures; West Asia conflict driven fuel price hikes and foreign exchange fluctuations; and the crash of AI171 made it the most challenging year for Air India. At every stage, Air India's teams responded with resilience and adaptability," he said, as quoted by reports.

The turmoil also led to the resignation of chief executive Campbell Wilson, after which Chandrasekaran began personally overseeing weekly reviews of flight operations, commercial strategy and financial planning at the airline.

Despite the losses, Tata Sons said some operational metrics are improving. Refurbishment of Air India's narrow-body fleet used on domestic routes is complete, while retrofitting of wide-body cabins will continue through late FY28.

On the AI171 crash of June 12, 2025, Tata Sons said insurance is expected to cover most of the financial impact, with claims from passengers, crew and third parties largely covered under the airline's aviation liability insurance.

The FY26 annual report showed Air India recognised a ₹270.04 crore exceptional item linked to the insurance settlement for the loss of the Boeing 787 aircraft and related costs under its hull insurance policy. After adjusting for other exceptional losses, the "Others" category reported a net exceptional gain of ₹241.19 crore, the report said.