Tata Sons' Chandrasekaran says Air India turnaround could take a decade amid deepening losses
Tata Sons has reset expectations for Air India's revival, with chairman N. Chandrasekaran telling shareholders that building a global airline is a five- to 10-year
Tata Sons has reset expectations for Air India's revival, with chairman N. Chandrasekaran telling shareholders that building a global airline is a five- to 10-year effort rather than a matter of quarters, signalling the turnaround will take longer than originally envisaged. The comments, made in Tata Sons' FY26 annual report released on Monday, are the first time Chandrasekaran has publicly framed Air India's transformation over such a long horizon since the Tata Group regained control of the airline in January 2022. “Every great airline in history was built over decades, not quarters,” Chandrasekaran wrote. “Given where it began, Air India's transformation must be seen as a five- to ten-year journey, considering the years-long supply chain disruptions in key components, the need to overhaul legacy systems, culture and fleet, and the creation of a large cadre of technical and airline professionals.” Also Read | Noel Tata backs shorter term for Chandra, seeks succession plan He described the task as rebuilding the airline through “fleet renewal, training, service transformation and network expansion.” The remarks effectively extend the timeline beyond Vihaan.AI, the five-year transformation programme unveiled in September 2022 under outgoing chief executive Campbell Wilson to restore profitability and rebuild Air India into a world-class carrier.
Instead, FY26 became Air India's toughest year since returning to the Tata fold. The closure of Pakistani airspace from April 2025, the fatal AI171 crash in June of same year, the conflict in West Asia and higher fuel costs disrupted operations, while aircraft delivery delays constrained expansion. Air India also cut several domestic and international routes to stem losses. Wilson, meanwhile, announced his resignation in April and is expected to step down in September. A successor is yet to be announced. Losses widen The difficult operating environment was reflected in Air India's financial performance. Air India and low-cost subsidiary Air India Express posted a combined net loss of ₹22,238 crore in FY26, more than double the previous year's ₹10,859 crore, while combined revenue fell nearly 9% to ₹71,870 crore. Air India reported revenue of ₹51,452 crore and a loss of ₹15,368 crore, while Air India Express posted revenue of ₹19,088 crore and a loss of ₹6,767 crore. The widening losses left Air India further behind market leader IndiGo, which reported revenue of ₹84,962 crore in FY26, up from ₹80,802 crore a year earlier, although it swung to a net loss of ₹2,394 crore, largely because of foreign exchange losses.
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