Aerospace

Air India Transformation on Track Despite Turbulent Year, INR 4,000 Crore Hit from Pakistan Airspace Closure

By N. C. Bipindra

New Delhi: Indian carrier Air India chief executive officer (CEO) Campbell Wilson on Oct. 29, 2025, reaffirmed that the airline’s long-term transformation programme remains firmly on course, even as it navigates one of its most challenging years marked by operational disruptions, supply-chain hurdles, and the tragic Ahmedabad plane crash in June.

Speaking at the Aviation India and South Asia 2025 conference, Wilson said the closure of Pakistani airspace, following the Pahalgam terror attack in April and subsequent military action, had severely impacted the airline’s operations.

“The closure is expected to cost around INR 4,000 crore this financial year,” he noted, citing the increased fuel and routing costs associated with longer international flight paths over West Asia and Europe, which witnessed armed conflicts such as Israel-Hamas and Russia-Ukraine wars.

A panel discussion featuring Campbell Wilson, CEO of Air India, and Mark Pilling, Programme Director of Aviation India, at the Aviation India and South Asia 2025 conference. The backdrop displays the event's branding and details.
Photo: Air India CEO Campbell Wilson (left) talks to Aviation India Programme Director Mark PIlling at the Aviation India 2025 in Delhi on Oct. 29, 2025. Credit: X.

Wilson also addressed the devastating crash of Air India’s Boeing 787-8 aircraft on June 12, which claimed 260 lives, including 241 passengers. Calling it “absolutely devastating” for the families, staff, and the Tata Group-owned company, he said the airline has been doing “everything possible” to support those affected.

“We have over 600 people on the ground in Ahmedabad and, together with Tata, set up a trust providing additional share payments to all affected families,” Wilson said. He confirmed that interim compensation has been completed and final payments are being processed.

The CEO emphasised that the crash investigation, led by the government’s Aircraft Accident Investigation Bureau (AAIB), is entirely independent of the airline.

“The interim report indicated there was nothing wrong with the aircraft, its engines, or the operation. We, like everyone else, await the final report, and if there’s anything to learn, we will absolutely act on it,” he said.

Following the crash, Air India implemented a temporary “safety pause,” reducing international operations by about 15% for three months to conduct comprehensive checks. “Operations have since returned progressively to normal levels,” Wilson added.

Addressing supply-chain challenges, Wilson said delays in aircraft deliveries and refurbishment programmes have affected timelines. “It takes about seven years to design, certify, manufacture, and install new first-class seats. We began the process in mid-2022, and the first refurbished wide-body aircraft will roll out in early 2026,” he explained.

Despite these setbacks, Wilson expressed confidence in Air India’s transformation journey under Tata Group ownership. “At the time of privatisation, Air India had just over 100 aircraft. Today, we have 300, with 524 more on order,” he said.

The airline is expected to induct one new aircraft approximately every six days over the next three to four years, with wide-body fleet expansion scheduled to accelerate in 2026.

Wilson looked directly at American aerospace and defence major Boeing’s India chief, Salil Gupte, who was seated in the first row among the audience, when he remarked about deliveries. And, Salil Gupte, nodded, assuringly.

“The foundations have been laid. 2026 is when we will truly start seeing the new Air India properly emerge,” Wilson said, underlining that the transformation involves not only fleet expansion but also improvements in service quality, safety, and operational efficiency.

Amid global conflicts, workforce shortages, and aviation industry disruptions, Air India’s CEO maintained an optimistic outlook: “While this year has been one of the toughest, our commitment to safety, quality, and transformation remains unwavering.”

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