Tata Sons Chairman N. Chandrasekaran has emphasized that the revival of Air India is a mission spanning five to ten years, not a short-term fix. In his message within the Tata Sons Annual Report for 2025-26, Chandrasekaran acknowledged that the airline faced one of its most challenging years yet, nearly four years after the Tata Group reacquired it.
He stressed that rebuilding India's flag carrier demands more than just new aircraft; it requires a comprehensive transformation of its systems, culture, technology, and talent. Chandrasekaran urged against judging the airline's progress quarter by quarter or even year by year, likening the process to how other great global airlines were established over decades.
Navigating Headwinds and Inherited Challenges
Air India grappled with significant external pressures, including airspace closures, volatile fuel prices exacerbated by conflict in West Asia, foreign exchange fluctuations, and the tragic AI171 crash. Internally, the Tata Group inherited an airline burdened with an aging fleet, outdated technology, inconsistent customer service standards, and years of underinvestment when it took control from the government in January 2022.
Addressing these deep-seated structural issues is a long-term endeavor, according to Chandrasekaran. The airline has also contended with global supply chain disruptions impacting aircraft deliveries and spare parts, all while simultaneously rebuilding engineering capabilities, training thousands of aviation professionals, and modernizing legacy IT systems.
Emerging Signs of Progress
Despite the formidable challenges, the company highlighted several operational improvements indicating that the transformation is moving in a positive direction:
- Fleet Refurbishment: The narrow-body fleet, primarily serving domestic routes, has already undergone refurbishment, leading to positive customer feedback. The wide-body aircraft refurbishment is projected to be completed by the end of FY28, which is expected to significantly enhance the international travel experience.
- Customer Satisfaction: Air India's Net Promoter Score (NPS), a key measure of customer loyalty, has dramatically improved from -35 in FY23 to +42 by June 2026. This substantial jump suggests passengers are increasingly recognizing improvements in service quality.
Financial Hurdles Remain
While operational metrics show improvement, these gains have not yet translated into profitability. The annual report revealed a decline in Air India's revenue to ₹71,870 crore in FY26, down from ₹78,636 crore a year prior. The airline reported a loss after tax of ₹15,367.75 crore, with Air India Express also posting a loss of ₹6,767.29 crore. These figures underscore the considerable investment still required to modernize the group's aviation operations.
A Vision for 2047 and Beyond
Chandrasekaran views Air India's transformation as integral to a broader national ambition. Looking ahead to 2047, the centenary of India's independence, he envisions an Air India that not only carries passengers globally but increasingly showcases India's industrial capabilities, from domestically manufactured components to indigenous defense technologies.
He argues that a nation of 1.4 billion people and one of the world's fastest-growing economies deserves a globally competitive flag carrier. This long-term objective extends beyond aviation, aiming to create hundreds of thousands of jobs across aviation, tourism, and logistics, ultimately positioning India as a global aviation hub rather than merely a transit market served by foreign airlines.
Chandrasekaran's recent remarks signal a strategic shift in how Tata wishes Air India's revival to be perceived, moving the focus from short-term financial performance to the rebuilding of institutional capability and a long-term national vision.