Air India crisis deepens ahead of final Ahmedabad crash report
Summary
Air India is facing serious problems ahead of the final report on its crash near Ahmedabad, India, that killed 260 people. The airline is struggling with leadership changes, big financial losses, safety issues, and external challenges like fuel costs and airspace restrictions, which threaten its plans to recover.Key Facts
- The crash of Air India flight AI-171 near Ahmedabad occurred on 12 June 2025 and resulted in 260 deaths.
- The Aircraft Accident Investigation Bureau (AAIB) is expected to release its final crash report within a month.
- Air India's CEO, Campbell Wilson, resigned halfway through his term amid reported losses of $2.4 billion for the year ending March 2026.
- Air India is currently the largest money-losing company within the Tata Group, which acquired the airline from the Indian government in 2022.
- The Tata Group board recently discussed cost-cutting measures and warned staff about difficult times ahead.
- Singapore Airlines, a 25.1% shareholder in Air India, may increase its involvement in managing the airline.
- Air India has faced several operational problems, including safety violations and a recent flight returning from Delhi to Vancouver due to lack of permission to enter Canadian airspace.
- External challenges like delayed plane deliveries and reduced route coverage, including cuts on important international flights, have hurt Air India's business recovery.
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