When Tata Group took over Air India on January 27, 2022, it was seen as the perfect homecoming. The sale, priced at ₹18,000 crore, drew criticism for undervaluing the airline’s vast assets but still sparked optimism. With Tata’s reputation for efficiency and integrity, many believed Air India would finally shed its bureaucratic baggage and become a world class airline.
Three years later, that optimism has dimmed. The airline continues to face operational chaos, mounting losses, and persistent service complaints. Despite the Tata name, Air India still feels stuck in its old ways: inefficient, inconsistent, and outpaced by private competitors.
Losses Mount, Help Sought
According to Bloomberg, Air India is now seeking at least ₹10,000 crore in financial support from its parent company, Tata Sons, and minority stakeholder Singapore Airlines. The funds are meant to overhaul operations and upgrade systems. While total revenue rose 15 percent to ₹78,636 crore in FY2025, losses ballooned 48 percent to ₹10,859 crore.
Even as Air India adds to the Tata Group’s top line, it is far from profitable. Its biggest rival, IndiGo, reported ₹80,802 crore in revenue and a healthy profit of ₹7,258 crore, commanding a 64 percent market share. Air India trails at around 27 percent, with passenger traffic falling 8 to 11 percent year on year in recent months.
Headwinds and Hard Lessons
Air India’s leadership blames a mix of external shocks including the closure of Pakistan’s airspace, global conflicts, tariff hikes, and travel restrictions for its troubles. But its greatest blow came from within: the June 12 Dreamliner crash that claimed 260 lives. While the investigation continues, early indications point to human or maintenance error, not mechanical failure. The tragedy dealt a severe blow to Air India’s reputation and morale.
The Directorate General of Civil Aviation has since flagged several safety and training lapses. In July alone, the regulator found 51 violations, including inadequate pilot training and fatigue mismanagement. Five safety breaches led to nine show cause notices, signaling deeper structural issues.
Fleet and Infrastructure Lag
Air India is also bogged down by an aging fleet. Sixty seven of its aircraft date back to its government days, and the much publicized 400 million dollar refurbishment plan has stalled due to supply chain delays. The airline’s larger 70 billion dollar fleet renewal program covering 570 new planes from Boeing and Airbus is progressing slower than promised.
Plans Gone Off Course
Under CEO Campbell Wilson’s five year transformation plan, Air India was supposed to move from taxi and take off phases into a climb phase this year, achieving operational break even, fleet modernization, and better passenger experience. Instead, nearly every metric is trending backward.
The 2024 merger of Vistara into Air India also raised questions. Vistara, known for its premium service and Singapore Airlines trained staff, had a strong brand identity. Folding it into Air India’s legacy structure diluted its value and confused customers. Many analysts now call it a strategic mistake.
Funding the Future
Tata Sons and Singapore Airlines together injected ₹9,558 crore last year, with Singapore Airlines contributing ₹6,333 crore, marking the largest capital infusion in Indian aviation history. But experts say Air India will need far more, possibly ₹20,000 to ₹25,000 crore annually, just to sustain operations and modernize its fleet.
A Tough Sky Ahead
The airline business has never been kind to optimists. Turning around a legacy carrier weighed down by debt, inefficiency, and tragedy is among the hardest tasks in aviation. For the Tatas, the Air India revival was meant to be a prestige project, a symbol of India’s modern corporate capability. Instead, it has become a test of patience, resilience, and how much turbulence a proud brand can endure before it truly takes off again.
