Air India CEO Wilson Faces Ouster Amid Turnaround Struggles
Overview
Air India CEO Campbell Wilson is reportedly losing favor with the Tata Group, facing a potential replacement despite his contract extending to 2027. The airline's turnaround efforts lag behind market leader IndiGo, with significant market share gaps persisting both domestically and internationally. Persistent operational issues and global supply chain constraints have hampered progress.
Air India Leadership Shake-up Looms
Campbell Wilson, the New Zealand-born CEO of Air India, is reportedly facing the prospect of replacement by the Tata Group, which acquired the struggling airline. Despite a contract running until 2027, sources suggest the Tata Group is exploring candidates for the top position, indicating dissatisfaction with the pace of the turnaround. Wilson faces the challenging task of revitalizing the carrier, once dubbed a 'white elephant'.
Stalled Turnaround vs. IndiGo's Ascent
Four years after the Tata Group took over, Air India's efforts to regain market share have shown limited success. In November, Air India Group held 26.7% of the domestic market, significantly trailing IndiGo's over 63%. This marks minimal growth from January 2023, when Air India's share was 25.4%. Meanwhile, IndiGo has expanded aggressively, absorbing market share from defunct Go First and even surpassing Air India on international routes with 21.88% versus Air India Group's 21.69% in the July-September quarter.
Systemic Hurdles and Global Constraints
Industry analysts point to a combination of factors hindering Wilson's plan, 'Vihaan.ai'. Aircraft delivery delays, complex integration of merged entities (AIX Connect with Air India Express, Vistara with Air India), legacy operational inertia, and global supply chain disruptions have significantly impacted execution. These external factors, coupled with internal execution challenges, have stalled the progress expected from a major turnaround effort.
Leadership Debate Continues
The potential exit of Wilson reignites the debate on employing expatriate CEOs for Indian airlines. While foreign leaders brought global best practices to carriers like Jet Airways and Vistara, questions persist about developing indigenous leadership. The Tata Group's strategy of integrating employees and culture faces scrutiny, particularly after experiencing its own share of expat CEOs in various verticals.
Lingering Safety Concerns
Recent incidents, including the tragic AI 171 crash and various operational shortcomings like clogged toilets and broken seats, have further clouded Air India's image. While the Tata Group enjoys strong brand trust, these persistent issues, amplified by regulatory scrutiny and supply chain constraints, likely accelerated a leadership review. Global airline turnarounds often take a decade, but Air India's lack of visible progress and communication has put its current leadership under intense pressure.
