Ashraf Engineer
July 19, 2025
EPISODE TRANSCRIPT
Hello and welcome to All Indians Matter. I am Ashraf Engineer.
One of the worst aviation disasters in recent history, the Air India crash in Ahmedabad that claimed close to 300 lives put in the spotlight the carrier’s unending woes despite privatisation. More than one expert has pointed out that the Boeing 787 is fine at a fundamental level but a lot hinges on consistent, reliable upkeep. These experts also pointed out that it’s been four years for Air India under the Tata Group and Singapore Airlines but operational challenges are mounting. Indeed, the crash apart, the airline has been consistently in the news for all sorts of problems, ranging from staff behaviour to delays, baggage mishandling and poor maintenance. Air India, under the Tata Group, has introduced several measures, such as crew sensitisation and passenger service protocols, but its blundering journey has raised questions about how effective they have been.
So, what’s going on? Privatisation was supposed to have been the silver bullet that would turn around Air India, wasn’t it?
SIGNATURE TUNE
Air India’s privatisation was one of the most anticipated disinvestments since liberalisation began in 1991. Years of mounting debt had made the airline a burden on government finances. So, when it was sold to the Tatas in January 2022, it was a landmark move. The government sold its 100% stake in Air India and Air India Express, and a 50% stake in ground-handling company AISATS to the Tatas for Rs 18,000 crore. Of this, Rs 15,300 crore was accounted for by the carrier’s debt. So, the Tatas eventually paid only Rs 2,700 crore in cash. At that time, Air India had piled on losses of Rs 85,000 crore, so the end of 69 years of government ownership was critical to the broader disinvestment strategy.
Since then, Air India has been grappling with legacy inefficiencies. Its standards are patchy, with an ageing fleet contributing to delays, cancellations and maintenance issues.
All this is in stark contrast to the high expectations when the Tatas acquired it. Soon after the sale, the group announced a $70 billion fleet overhaul as part of a five-year transformation plan christened Vihaan.AI. The CEO Campbell Wilson, an old Singapore Airlines hand, announced a recruitment drive of 9,000 employees and investments in IT and infrastructure. One of the aims was to achieve a drop in average employee age from 54 to 35. Yet, today, despite finally achieving an operating profit, Air India is beset by delays, poorly maintained aircraft and indifferent staff.
Let’s recount just one of the several embarrassments the airline has suffered in recent times. In March, a flight from Chicago to Delhi returned after five hours in the air because 11 of its 12 lavatories became unusable. The airline blamed passengers for flushing down rags and plastic bags but the incident also put into focus the sub-standard maintenance of the carrier’s aircraft.
Experts said the Air India experience is poor at virtually every customer touchpoint. The website isn’t great and neither is the app. The service at check-in counters is poor. The in-flight service and food can be below par and entertainment systems regularly don’t work. Baggage handling, too, is a problem.
Air India was ranked the worst airline for flight delays from UK airports in 2024. It ran an average of 45 minutes and 48 seconds late, according to an analysis of UK’s Civil Aviation Authority data. The Indian Ministry of Civil Aviation’s annual report for 2024-25, meanwhile, said Air India’s on-time performance was a dismal 68%, well below the industry average of 82%.
Within the organisation, there have been cultural issues after the acquisition. As a result, in May 2024, 300 employees called in sick at the same time, forcing the cancellation of 170 flights. All this is surprising because the integration with Vistara and the need to raise standards was hardly unexpected.
It’s a no-brainer that passengers expect reliability. So, what’s happening is destroying the little sentimental attachment they have left for the airline. The Tata brand may give it some elbow room but it’s not a lot. Air India simply has to get more efficient.
Aviation is a people business more than anything else, so the airline needs a cultural reset first. The employees that are now part of the Tata Group need to deliver excellence and professionalism – not something they were used to as government employees.
Perhaps technology can play a role. AI-based applications for maintenance and scheduling would boost productivity. Enhanced training could improve service standards.
Ironically, Air India’s crumbling comes in the backdrop of India becoming the world’s third largest aviation market. Prime Minister Narendra Modi has boasted of a golden chapter in Indian civil aviation that includes 240 million passengers annually, projected to double by 2030, and a tripling of cargo capacity from 3.5 million tons to 10 million tons. Modi added that Indian airports now have an annual capacity of 500 million passengers. All this, he said, was happening under the UDAN, or U-D-A-N, programme. UDAN is ‘Ude Desh ka Aam Naagrik’, a regional airport development initiative that is central to the government’s Regional Connectivity Scheme. However, of the 619 UDAN routes launched, only 323 remain active; 114 were discontinued within three years. Many costly regional airports are underutilised. So, it’s poor policy and planning all around.
Meanwhile, rising aviation turbine fuel costs and a weak rupee are raising aircraft lease and operational expenses. Airports too are increasing user charges.
So, Air India is dealing with a lot more than its own problems. It is dealing with them in an ecosystem that is less than optimal. This makes the return to a trusted airline brand that much tougher. Everyone – passengers, the wider aviation market, the government – is watching.
Thank you all for listening. Please visit allindiansmatter.in for more columns and audio podcasts. You can follow me on Twitter at @AshrafEngineer and @AllIndiansCount. Search for the All Indians Matter page on Facebook. On Instagram, the handle is @AllIndiansMatter. Email me at editor@allindiansmatter.in. Catch you again soon.
