The recent crash of Air India flight AI171 near Ahmedabad has cast a long shadow over the airline's ambitious turnaround plans. The tragedy, which claimed the lives of 241 passengers and crew, has not only shaken the nation but also raised serious questions about the Tata Group's efforts to revitalize the once-ailing carrier.
Air India's turnaround was initiated following its acquisition by the Tata Group in 2022, after decades of struggling under government ownership. The new owners implemented an aggressive strategy, including consolidating Air India, Vistara, and Air India Express into a unified entity, modernizing the fleet with an order of 470 new aircraft by 2033, and improving customer service. Early results were promising, with the group slashing Air India's losses by 60% in FY2023-24.
However, this recent disaster threatens to undo much of that progress. The crash has triggered renewed scrutiny of the airline's maintenance practices and safety standards, with investigators from India, the UK, the US, and Boeing working to determine the cause. Initial findings suggest the right engine of the Boeing 787-8 Dreamliner, which was replaced just three months prior to the crash, is central to the investigation. While Air India Chairman N. Chandrasekaran has stated that the aircraft had a "clean history" with no prior red flags, the accident has inevitably damaged the airline's reputation.
In the immediate aftermath, Air India has taken steps to address safety concerns and operational stability. The airline has announced a 15% reduction in international services operated by widebody aircraft and is conducting enhanced safety checks on its Boeing 787 fleet. While the Directorate General of Civil Aviation (DGCA) has stated that the enhanced surveillance checks revealed no major safety concerns, they did flag maintenance-related issues, particularly regarding spare part availability and coordination between teams.
Beyond the immediate safety concerns, the crash poses broader challenges to Air India's turnaround strategy. The airline's brand image, already tarnished by years of subpar service under government ownership, has suffered a further blow. Social media is replete with accounts of negative passenger experiences, and rebuilding trust will be a significant undertaking.
Moreover, the loss of a Boeing 787-8 Dreamliner could delay the airline's fleet refitting plans. The Dreamliner is central to Air India's global ambitions, operating on key routes to Europe, North America, and Southeast Asia. With global supply chain issues already causing delays in aircraft induction, the crash exacerbates the challenges of modernizing the fleet.
Despite these challenges, industry experts believe Air India's turnaround remains possible. The Indian aviation market is experiencing rapid growth, and Air India's extensive network and Star Alliance membership provide a strong foundation. The Tata Group's long-term vision and commitment to the airline are also crucial assets. The Vihaan.AI transformation plan, a $2.5 billion roadmap to digitize operations and improve customer experience, is still in progress.
However, the airline must prioritize safety and address operational inefficiencies to regain passenger confidence and achieve its ambitious goals. Clear and transparent communication with passengers is also essential, as acknowledged by Chairman Chandrasekaran. While the recent crash presents a significant setback, a renewed focus on core issues and a steadfast commitment to safety could help Air India navigate this crisis and stay on course for a successful turnaround.
