Air India CEO Race Narrows as Losses Mount and Succession Crisis Deepens

Key facts

• Nipun Aggarwal, currently CCO and transformation officer, leads the race for Air India CEO.
• Outgoing CEO Campbell Wilson will depart once a successor is found.
• Air India posted a net loss of ₹9,800 crore in FY2025, with FY2026 estimates of ₹20,000–22,000 crore.
• The airline generated ₹70,000 crore in revenue in the first nine months of FY2026 but still lost ₹16,000 crore.
• Pakistan's airspace closure forces longer routes for westbound flights, raising fuel and crew costs.
• The Ahmedabad accident in 2025 killed nearly 270 people, adding to operational setbacks.
• Air India's board includes eight members, with three from Tata Sons and an equal number of independent directors; Singapore Airlines holds 25.1% and its CEO sits on the board.

Leadership Transition Amid Financial Turmoil

Nipun Aggarwal, Air India's chief commercial officer and transformation officer, has emerged as the leading candidate to become the airline's next chief executive, according to reports. The succession comes as outgoing CEO Campbell Wilson prepares to step down once a replacement is confirmed, leaving the carrier at a critical juncture. The airline, which returned to Tata Group ownership in January 2022, has not posted a profit since privatization. Losses have widened sharply, with the combined entity reporting a net loss of ₹9,800 crore in FY2025 and estimates for FY2026 reaching ₹20,000–22,000 crore, making it one of the largest loss-making businesses within the Tata portfolio.

Aggarwal's Ascent and the Shortlist

Aggarwal, a former senior vice-president at Tata Sons and an Air India veteran, was part of the team that orchestrated the airline's acquisition from the government. He has since played a central role in expansion plans, including drawing up the flight network to Europe and North America and optimizing schedules for connecting flights. The Air India board has shortlisted two expatriate airline executives alongside Aggarwal. The board comprises eight members, including three representatives of Tata Sons and an equal number of independent directors. Singapore Airlines, which holds a 25.1% stake in Air India, has its CEO Goh Choon Phong on the board, adding external oversight to the selection process.

Revenue Growth Overshadowed by Structural Losses

Despite strong demand in India's fast-growing aviation market—passenger traffic is projected to reach 175–181 million by FY2026, growing 7–10% annually—Air India's financial performance has deteriorated. The airline generated ₹70,000 crore in revenue in the first nine months of FY2026 alone, yet still recorded losses of approximately ₹16,000 crore in the same period. This revenue-to-loss ratio signals a structural inability to convert demand into profit, pointing to inefficiencies in asset utilization and operational execution rather than market weakness. The initial plan to break even within five years of privatization has been pushed back.

External Shocks and Operational Costs

External pressures have compounded Air India's challenges. The closure of Pakistani airspace has forced westbound flights to Europe and North America to take longer routes, increasing fuel burn and crew costs. Fuel remains the largest variable cost for airlines globally, typically accounting for 30–40% of operating expenses. Rising crude oil prices have further elevated aviation turbine fuel costs. The airline also suffered a major setback in 2025 when an accident in Ahmedabad killed nearly 270 people, adding to the operational and reputational strain.

Board Dynamics and Stakeholder Interests

The Air India board's composition reflects the complex ownership structure. Tata Sons holds three seats, with an equal number of independent directors. Singapore Airlines, as a 25.1% shareholder, has its CEO on the board, ensuring the Singaporean carrier's interests are represented in strategic decisions. Aggarwal was appointed chairman of Air India Express in April last year, indicating his growing role within the group. The board's choice of CEO will need to balance the turnaround strategy with the financial realities of a carrier that accumulated over ₹60,000 crore in losses during government ownership before privatization.

What Comes Next for Air India

The new CEO will inherit an airline that is generating strong revenue but bleeding cash, with losses expected to widen further. The leadership transition comes amid regulatory pressures and persistent financial losses that prompted Wilson's departure. The carrier's ability to restructure its cost base, optimize network planning, and restore profitability will be tested. The closure of Pakistani airspace shows no signs of resolution, and fuel costs remain volatile. The board's decision on the next CEO is expected in the coming weeks, with Aggarwal seen as the candidate most familiar with the airline's transformation blueprint.

A Critical Juncture for Tata's Aviation Ambition

Air India's struggles underscore the difficulty of turning around a legacy carrier with deep structural inefficiencies, even under the stewardship of a conglomerate like Tata. The airline's losses are now among the largest in the group, and the leadership churn signals that the transformation is not proceeding as planned. The paradox of strong demand and weak financials suggests that the next CEO must focus on operational efficiency and cost discipline rather than just expansion. The outcome of the succession will determine whether Air India can finally break the cycle of losses or remain a drag on Tata's broader portfolio.

The bottom line

• Nipun Aggarwal is the frontrunner to become Air India's next CEO, with two expatriate executives also on the shortlist.
• Air India's losses have widened to an estimated ₹20,000–22,000 crore in FY2026, despite strong revenue growth.
• The airline generated ₹70,000 crore in revenue in nine months of FY2026 but still lost ₹16,000 crore, indicating structural profitability issues.
• External factors like Pakistani airspace closure and rising fuel costs are adding to operational expenses.
• The board includes Tata Sons representatives, independent directors, and Singapore Airlines' CEO, reflecting a multi-stakeholder governance structure.
• The new CEO will face the challenge of converting strong demand into sustainable profitability amid ongoing financial and operational pressures.