Air India Ltd. must regain credibility with fliers and enforce sharper financial discipline, Chairman Natarajan Chandrasekaran said – underscoring the airline’s turnaround as a key ambition of his tenure – at his first town hall since announcing he will step down in February.
Chandra, as he’s commonly known, told employees the airline is entering a critical phase after a turbulent 18 months marked by geopolitical disruptions, airspace closures, fuel volatility and a fatal crash. His remarks Monday signaled the strategic importance he continues to place on Air India’s revival even as he prepares to hand over leadership of Tata Sons Pvt. – the holding company of the sprawling Tata Group.
He said Air India must now prioritize “customer trust, operational execution and cost discipline,” following a record 220 billion rupees ($2.3 billion) loss last fiscal year and regulatory scrutiny over safety-related issues.
While last year’s crash dealt a blow to Air India’s safety reputation, the carrier has since faced fresh scrutiny after a recent Airbus SE A320 flight suffered a sudden altitude drop, with the pilot later testing positive for illegal drugs.
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“Our safety record should not just match the best airlines in the world – it should be better than the best,” he said.
The airline – whose turnaround Chandra previously described as a decade-long effort – is close to securing 100 billion rupees in financial aid from its owners Tata Sons and Singapore Airlines Ltd.
The town hall also marked the formal introduction of Tewolde Gebremariam, who joins Air India after a month of meetings with Tata Group leadership and will become chief executive officer and managing director following regulatory approvals. His appointment reflects Tata’s intent to bring in globally seasoned leadership: at Ethiopian Airlines Group, Tewolde led its transformation into Africa’s largest and most profitable carrier.