Following the devastating Air India-171 crash, which tragically resulted in the loss of at least 270 lives, international investigators are collaboratively working to determine the cause. Currently, there are no definitive findings, and a comprehensive understanding may require several months.
This tragedy presents the Tata Group, Air India’s owner (alongside brands like Jaguar Land Rover and Tetley Tea), with unprecedented challenges at a critical stage of the airline’s ambitious restructuring.
Air India’s trajectory had been promising prior to the accident.
Under Tata ownership (since 2022), the airline demonstrated an operating profit, improved revenue, and reduced customer complaints.
While some dissatisfaction remained regarding service standards, in-flight entertainment, and delays, these were largely attributed to the complexities of ongoing operational mergers.
Visible improvements were also underway; modernized aircraft livery and interiors, new A-350s deployed on key routes, and a significant order for new aircraft to replace older models and meet India’s growing aviation demand.
Following years of underinvestment during state ownership, the Tatas had declared earlier this year that Air India was in the “final climb phase” of its transformation into a world-class airline.
Last week’s crash has severely jeopardized these plans.
The widespread sentiment, “I’ll never fly Air India again,” reflects the understandable public reaction to such a significant incident. Although Air India and its Dreamliners boast a strong safety record, experts predict a decline in passenger confidence that could hinder ongoing turnaround efforts.
Recent incidents—including suspected engine malfunctions and a hoax bomb threat—further exacerbate the situation.
Jitendra Bhargava, a former Air India executive director, noted, “There will be a short-term impact; people may be hesitant to fly Air India. The tragedy was devastating, and the event will remain in people’s memories.” Shukor Yusof of Endau Analytics confirmed cancelled bookings, adding, “Air India’s turnaround was already challenging due to legacy issues. The aftermath of the tragedy will require a pause and extend the timeline.”
Significant resources will be diverted to addressing non-operational aspects like insurance, legal matters, and reputational damage, Mr. Yusof explained. Drawing parallels with Malaysia Airlines’ 2014 tragedies, he projected a potentially lengthy recovery period, possibly a decade or more.
Air India, he noted, will require time to recover, potentially losing its competitive edge in India’s expanding aviation market.
Operational strain is already evident. Air India has announced a 15% reduction in international wide-body flights until mid-July due to heightened safety inspections and airspace restrictions.
The ongoing investigation and its potential findings will continue to cast a shadow over the airline. Aviation expert Mark Martin anticipates intense global scrutiny regarding operational procedures, aircraft maintenance, and Air India’s efforts to modernize its fleet.
Mitu Samar Jha, a reputation management consultant, emphasizes the importance of a decisive recovery strategy and transparent communication. Air India needs to effectively address questions about its fleet, Boeing’s involvement, and its own safety standards.
She cautions against focusing solely on immediate action while neglecting ongoing updates, which could lead to misinterpretations and further reputational damage.
Air India aims to navigate this crisis effectively. CEO Campbell Wilson has reiterated the airline’s commitment to cooperating fully with investigators and supporting victims’ families. Tata Group chairman N Chandrasekaran urged employees to remain steadfast, emphasizing the importance of using this as a catalyst for improved safety.
Aviation consultant Sanjay Lazar highlights Air India’s skilled pilots and engineers, while the mandated enhanced safety inspections on 787 Dreamliners should alleviate passenger concerns. He suggests that the airline will likely adopt an even more cautious approach to safety protocols.
The Tata Group can draw strength from its partnership with Singapore Airlines (SIA), known for its operational excellence. SIA’s support will likely be crucial in Air India’s recovery, according to Mr. Yusof.
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