Air India delays hikes by one quarter as CEO pushes cost discipline during aviation crisis Air India has postponed annual salary increases for employees by at least one quarter, citing rising fuel costs, geopolitical tensions, and airspace disruptions as key factors affecting the airline’s financial stability. CEO Campbell Wilson emphasized the need for cost discipline during an internal townhall meeting, where he also revealed that over 1,000 staff had been terminated for ethical violations in the past three years. The announcements were made alongside discussions about broader operational reforms and the airline’s ongoing transformation under Tata Group ownership. The decision to delay salary increments comes amid mounting pressure on Air India’s finances, driven by a combination of factors including soaring aviation turbine fuel prices, which constitute a significant portion of airline operating costs. Additionally, the airline faces operational challenges due to the closure of Pakistan’s airspace, which has forced longer flight routes and increased fuel burn on several international routes. Wilson described the current environment as potentially “very, very difficult” for the airline if Middle East tensions persist, highlighting the precarious balance between maintaining financial stability and sustaining service quality. During the townhall, Wilson and senior executives, including CFO Sanjay Sharma and CHRO Ravindra Kumar GP, addressed employees about the company’s strategy to navigate these challenges. While the airline confirmed that layoffs are not currently planned, Kumar GP reassured staff that the focus remains on cost control rather than workforce reductions. The airline also reiterated its commitment to improving customer experience while adhering to strict financial discipline.#air_india_express #air_india #tata_group #campbell_wilson #employee_leisure_travel
Air India Fires Over 1,000 Staff for Ethical Breaches Amid Financial Strain Tata Group-owned Air India (AI) has terminated more than 1,000 employees over the past three years for ethical violations, including smuggling goods off aircraft and allowing passengers to carry excess baggage without paying the applicable charges. CEO and Managing Director Campbell Wilson disclosed these figures during an internal town hall meeting held on May 8, 2026. The decision comes as the airline faces mounting financial losses and seeks to tighten financial controls. Wilson warned staff that hundreds of terminations occur annually due to non-compliance, emphasizing that employees must uphold integrity even when unobserved. Wilson addressed approximately 24,000 employees, detailing the nature of the ethical breaches. He cited instances where staff smuggled items off planes and permitted passengers to bypass baggage fees. These actions, he stated, are unacceptable and carry severe consequences, including dismissal. The CEO also highlighted widespread misuse of the Employee Leisure Travel (ELT) system. In March 2026, sources informed PTI that Air India identified significant discrepancies in the ELT policy involving over 4,000 employees. The airline has since initiated corrective measures, including financial penalties against those found responsible for the violations. Financial pressures have driven Air India’s cost-cutting initiatives. The airline has deferred annual salary increments and directed staff to reduce discretionary and non-critical spending. Wilson cautioned employees that 2026 would be “a very, very difficult year” if Middle East conditions remain unstable.#air_india_express #air_india #tata_group #campbell_wilson #employee_leisure_travel
Air India Cuts Staff and Tightens Compliance Amid Record Losses Air India CEO and Managing Director Campbell Wilson revealed during a town hall meeting that the airline has terminated over 1,000 employees in the past three years for violations of internal policies. The dismissals, part of a broader compliance crackdown, targeted misconduct such as misuse of the Employee Leisure Travel (ELT) system, smuggling items off aircraft, and allowing excess baggage without proper charges. Wilson emphasized the airline’s commitment to enforcing stricter adherence to operational and ethical standards amid mounting financial pressures. The Air India Group, which includes Air India and Air India Express, is projected to have incurred losses exceeding Rs 22,000 crore in the financial year ended March 2026. This marks a significant decline compared to previous years, with the airline’s losses escalating from a Rs 1,63.12 crore deficit in FY 2023-24 to a steep Rs 58,32.37 crore loss in FY 2024-25. The financial strain has prompted the Tata Group-owned airline to implement sweeping cost-cutting measures, including withholding annual salary increments, reducing discretionary spending, and eliminating non-essential expenditures across departments. The airline’s restructuring efforts under the Tata Group aim to stabilize its operations amid persistent challenges. Government data highlighted that Air India Express, a subsidiary, also reported a sharp rise in losses during FY25, exacerbating the group’s financial woes. Wilson warned employees that the current fiscal year could become “very, very difficult” if geopolitical uncertainties in the Middle East—long a key market for Air India—persist.#air_india_express #air_india #tata_group #campbell_wilson #employee_leisure_travel
Air India Terminates Over 1,000 Employees for Ethical Breaches Over Three Years Air India has terminated more than 1,000 employees over the past three years for ethical violations, including misuse of the Employee Leisure Travel (ELT) system and misconduct such as smuggling items off flights or allowing unpaid excess baggage onto aircraft, according to CEO Campbell Wilson. The airline’s CEO made these remarks during a town hall meeting with staff on May 8, 2026, highlighting the company’s strict stance on compliance amid financial challenges. Wilson emphasized that hundreds of employees are dismissed annually for non-compliance, stressing that staff must adhere to ethical standards even when oversight is lacking. The airline, which is owned by the Tata Group, currently employs around 24,000 workers. The CEO noted that the terminations are part of broader cost-cutting efforts as Air India faces significant financial pressures. The ELT system, which allows employees to use company resources for personal travel, has been a focal point of internal investigations. In March 2026, reports indicated that over 4,000 employees were found to have misused the policy, prompting corrective actions such as penalties for those involved. Wilson reiterated that such practices are unacceptable and must be addressed to maintain operational integrity. Air India has implemented stringent cost-saving measures, including withholding annual salary increments and urging staff to reduce discretionary spending and non-essential expenses. The airline has warned of “tough times” ahead, with Wilson stating that the coming year will be “very, very difficult” if the Middle East market—its primary revenue source—fails to improve.#air_india #tata_group #campbell_wilson #employee_leisure_travel #air_india_group
