Crash and reckoning: Air India faces its gravest test since Tata takeover

On May 7, 1949, after flying Air India, Prime Minister Jawaharlal Nehru wrote to J.R.D. Tata congratulating him for “raising the prestige of India abroad”. “The more experience I have of it, the better I like it,” he wrote. Nearly eight decades later, the airline—once J.R.D. Tata’s pride—is facing a massive crisis. Three years ago, when the Tata group took control of the erstwhile national carrier, hopes were high that the loss-making airline, infamous for shoddy service and delays, would turn around. But hopes came crashing down on June 12 when London-bound AI-171, a Boeing 787-8 Dreamliner, burst into a fireball 32 seconds after take-off from Ahmedabad, killing all but one of the 242 people on board and several others on the ground. “This is an irreparable damage that will take time to heal. It will benefit foreign carriers who operate international flights in India,” says Mark D. Martin, founder and CEO of aviation advisory & risk firm Martin Consulting. Ascertaining the cause of the crash is vital to securing air safety as well as Air India’s future. “Most standard operating procedures (SOPs) are made on someone’s blood. Today, the aviation industry is much safer. Over a period of time, pilots, crew, operators, regulators…everybody has evolved and made SOPs,” says Captain Anil Rao, general secretary of the Airline Pilots’ Association of India. He emphasises, “every accident or incident creates the next set of SOPs or corrections to be implemented,” and a strategic overhaul is imperative for the sector battered by frequent flyer complaints about sub-par service experience. “We need strong airline oversight control. We need an airline with thorough professional managers,” Martin says. ‘Saw it coming’ The crash, marking the first hull loss for a Boeing Dreamliner, prompted urgent safety checks by India’s aviation regulator. The Directorate General of Civil Aviation (DGCA) ordered Air India to undertake immediate technical inspections of all Boeing 787-8 and 787-9 aircraft fitted with GE Aerospace’s GEnx engines. It also intensified surveillance of maintenance protocols and airworthiness procedures for all wide-body aircraft operating in India, in addition to a special audit to strengthen aviation safety. However, safety experts saw the tragedy coming. “People who work in safety are not surprised that this accident happened,” says Captain Amit Singh, aviation expert and founder, Safety Matters Foundation. According to a March 2025 report by the Parliamentary Standing Committee on Transport, Tourism and Culture, there were fundamental concerns over safety, security, and service delivery standards, particularly as air traffic volumes continue to rise. The panel had also flagged the “modest” funding of the Aircraft Accident Investigation Bureau (AAIB), the agency now probing the AI-171 crash. “You need more trained manpower. If you are not recruiting, you will be behind,” says Singh, referring to over 1,000 new aircraft ordered by Indian carriers. The crash has forced the DGCA to act on previous lapses by Air India. On June 20, it ordered Air India to “remove” three officials involved in crew scheduling and rostering, warning that any future violations would attract strict enforcement action, including licence suspension. Air India was penalised `90 lakh for flying an aircraft with an unqualified crew last year. The DGCA also issued a show-cause notice to Air India for operating two flights from Bengaluru to London (AI-133) on May 16 and May 17, exceeding the stipulated flight time limit of 10 hours. In an industry-wide audit on June 24, the regulator found multiple cases wherein certain defects reappeared many times on aircraft. The government has also formed a high-level committee under the Union home secretary to conduct an “independent” and “comprehensive inquiry”. Fortune India’s requests for comment from DGCA and Air India went unanswered till the time of going to press. Ailing Maharaja Under government control, Air India was a union-run airline with broken seats and poor maintenance. However, when the Tatas brought the Maharaja back under its wing for $2.3 billion in 2022, it was expected that they would fix the house. But, the airline still faces a lot of flak for sub-standard services such as poor air conditioning, defunct infotainment screens, and worn-out seats. “There are problems as far as service standards are concerned,” admits Jitender Bhargava, former executive director, Air India. Martin says the Tata group should have focussed on bringing Air India back on its feet. “The airline was pretty much dilapidated. They should have fixed the maintenance, engineering, and flight operations.” But the challenge was that the Tatas were not in the aviation business for a long time. Bhargava concurs. “They had to induct people, get a management team, and start growing. They could have grounded sub-par aircraft, but that would mean shrinking the routes.” On longer routes such as Europe, the U.S., Canada, Australia, and Japan, Air India is the only player among Indian carriers. “We must be realistic. There is a balance to be struck, whether you want to have a world-class airline from Day One or gradually work towards this goal. If Air India had shrunk its network, other airlines would have come in and enhanced their stranglehold on these markets,” Bhargava explains. In a message to Maharaja Club members a few days after the accident, Air India CEO Campbell Wilson said the ill-fated aircraft was “well-maintained” with its last major check in June 2023. “The aircraft and its engines were regularly monitored, showing no issues before the flight.” Even as the industry awaits the official investigation report to ascertain the future course of action for Air India, Wilson, while addressing employees at the airline’s Gurugram headquarters, said, “Where there is any doubt, we will not release aircraft—of any type—for service.” While it should have been a rule of thumb all along, Air India might find answers to its troubles in its own history—specifically in J.R.D. Tata’s cardinal principle: ensuring that passengers feel safe and have no reason to complain. Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

Crash and reckoning: Air India faces its gravest test since Tata takeover

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