Tata Sons chief explains Air India's transformation to take 5-10 years
Dhaka: Tata Sons Chairman N. Chandrasekaran said the transformation of Air India remains a "long journey" that will take five to ten years to complete, citing global supply chain disruptions, legacy operational challenges, and large-scale organizational changes.
His remarks came weeks after the airline posted a wider-than-expected annual loss of more than INR 22,000 crore in fiscal year 2026.
In his message in the Tata Sons Annual Report for 2025-26, Chandrasekaran said meaningful progress has been made since the Tata Group regained control of the airline in January 2022, though rebuilding a global carrier requires sustained investment and time.
"Given where it began, Air India’s transformation must be seen as a five- to ten-year journey, considering the years-long supply chain disruptions in key components, the need to overhaul legacy systems, culture and fleet, and the creation of a large cadre of technical and airline professionals," he said.
Chandrasekaran, who also chairs Air India, said the transformation spans fleet modernization, network expansion, customer service improvements, technology upgrades, and talent development. He noted every major airline in history was built over decades, not quarters.
The airline's narrow-body aircraft on domestic routes have already been refurbished with encouraging customer feedback, he said, while refurbishment of the wide-body fleet is expected to be completed by the end of fiscal year 2028.
Air India's Net Promoter Score has also improved sharply, rising from -35 in fiscal year 2023 to +42 in June 2026, reflecting better customer satisfaction, according to Chandrasekaran.
He described 2025-26 as one of the airline's most difficult years, pointing to airspace closures, the Middle Eastern conflict-driven fuel price hikes, foreign exchange fluctuations, and the crash of Flight AI171.
Despite the setbacks, he reaffirmed the airline's long-term ambition of becoming a world-class flag carrier for India, connecting the country to the world while creating jobs across aviation, tourism, and logistics.
According to the annual report, Air India's revenue declined to INR 71,870 crore in fiscal year 2026, from INR 78,636 crore the previous year.
The airline reported a loss after tax of INR 15,367.75 crore, while its low-cost wing, Air India Express, posted a loss of INR 6,767.29 crore, taking the total loss to over INR 22,000 crore.
