Air India is facing growing operational and financial pressure as the airline approaches the first anniversary of the June 2025 crash involving a Boeing 787-8 Dreamliner near Ahmedabad, an accident that killed 260 people and whose causes remain officially unresolved, according to a report published by the BBC.
India’s Aircraft Accident Investigation Bureau (AAIB) is expected to release its final report next month, nearly one year after the London-bound flight AI171 crashed seconds after takeoff from Ahmedabad.
The accident was the first fatal crash involving a Boeing 787 and immediately placed Air India’s modernization and expansion plans under intense scrutiny.
Since then, the carrier has faced criticism in India over the pace and transparency of the investigation, while preliminary information and unofficial interpretations circulated publicly before the release of final conclusions.
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The crisis has also coincided with huge difficulties inside the airline, which was privatized in 2022 after decades under state control and acquired by the Tata Group.
Air India had launched an ambitious restructuring effort after privatization, including major aircraft orders, fleet renewal plans and network expansion intended to restore the airline’s competitiveness against Gulf carriers and other Asian rivals.
However, the carrier has struggled with delayed aircraft deliveries caused by supply chain disruptions, route reductions and rising operating costs linked to fuel prices and currency depreciation.
Tata Group’s biggest loss-making company
According to the BBC report, Air India reportedly recorded losses of about $2.4 billion for the fiscal year ending in March 2026, making it the largest loss-making company within the Tata Group portfolio.
The report also said chief executive Campbell Wilson resigned last month amid mounting pressure over the airline’s financial and operational performance.
In recent months, Air India has also faced scrutiny over operational incidents and regulatory findings. India’s aviation regulator previously identified dozens of safety-related violations during audits of the airline, while some long-haul flights were disrupted by operational and regulatory issues.
The airline’s turnaround strategy has additionally been affected by geopolitical tensions and airspace restrictions in parts of the Middle East, increasing operational complexity for international routes.
Air India currently operates one of the world’s largest aircraft renewal programs, with orders for Airbus A350s, A320neo-family aircraft, Boeing 737 MAX jets and 787 Dreamliners intended to modernize a fleet that for years suffered from underinvestment and inconsistent maintenance standards under government ownership.
