As India’s Aircraft Accident Investigation Bureau (AAIB) prepares to release its final report on the fatal Air India flight AI-171 crash in Ahmedabad on June 12, 2025, the airline is grappling with a severe crisis. The devastating incident, which claimed 260 lives, comes as Air India faces a leadership vacuum, substantial financial losses, airspace restrictions, and a Middle Eastern fuel shock, all casting doubt on its ambitious turnaround plan and raising concerns about its operational safety record.
Leadership Vacuum and Financial Woes
The departure of Chief Executive Officer Campbell Wilson mid-term, shortly before the end of the fiscal year ending March 2026, has exacerbated the airline’s challenges. Reports indicate that Air India incurred losses of approximately $2.4 billion for this period, making it the biggest loss-making entity within the Tata Group, which acquired the airline from the government in 2022.
The Tata Group’s board convened recently to discuss cost-cutting measures and warned employees of impending
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