Just days after the tragic Air India-171 crash claimed the lives of at least 270 individuals, investigators from around the globe are collaborating to determine the cause of this catastrophic event. As the aviation community awaits answers, the Tata Group, which owns Air India, is facing an array of unprecedented challenges that threaten the airline's ambitious recovery plans. This incident comes at a crucial moment when Air India seemed to be making significant strides in its transformation.
Under the ownership of the Tata Group, which acquired the airline from the government in 2022, Air India had begun to show promising signs of recovery. The airline reported an operating profit, improved revenues, and a decrease in customer complaints. Although there were lingering issues such as poor service standards, dysfunctional in-flight entertainment, and flight delays, many believed these were minor setbacks during a transitional phase. The airline was undergoing complex mergers aimed at streamlining operations.
Cosmetic improvements were becoming apparent, with a sleek new livery and retrofitted interiors on some aircraft. Additionally, the introduction of new A-350 aircraft and a record-breaking order for new planes signaled a commitment to modernizing the fleet and meeting the demands of India's growing aviation market. Earlier this year, the Tata Group expressed confidence that Air India was nearing the final stages of its transformation into a world-class airline.
The horrific crash has cast a dark cloud over these optimistic plans. Many individuals, fueled by panic and fear, have declared, "I'll never fly Air India again." While the airline, particularly its Dreamliners, has a strong safety record, this instinctive reaction is common following a disaster of this magnitude, according to aviation experts. The loss of passenger confidence could significantly derail the efforts already underway to turn the airline around.
Further complicating matters, several other incidents have been reported this month, including engines experiencing suspected technical issues and a hoax bomb threat aboard a plane with 156 passengers traveling from Phuket to Delhi. Jitendra Bhargava, a former executive director at Air India, noted, "There will definitely be a short-term impact where people may be wary of flying Air India." Cancellations are already being reported, and analysts suggest that the airline's turnaround may take longer than initially anticipated.
Air India has faced numerous challenges as a flag carrier, exacerbated by legacy issues and financial difficulties. The aftermath of this tragedy necessitates a pause as the airline grapples with its consequences. Resources will need to be redirected to handle non-operational issues related to the crash, including insurance claims, legal matters, and addressing reputational damage.
Mark Martin, an aviation expert, emphasized the airline's heightened scrutiny due to ongoing investigations involving authorities from the UK, US, and India. He noted, "Questions will be raised about operational and aircraft maintenance issues, and about what Air India has done to fix its old fleet." The investigation's findings could further impact the airline's reputation and operational capabilities.
Effective recovery action and consistent communication are crucial in the wake of a crisis, according to Mitu Samar Jha, a risk and reputation advisor. Air India must navigate this situation carefully to avoid missteps that could exacerbate its reputation loss. The challenges are compounded for the Tata Group, which must address questions regarding the inherited fleet, ongoing issues with Boeing, and its own maintenance standards.
Air India’s CEO, Campbell Wilson, has emphasized the airline's commitment to cooperate with investigators and support the victims' families. Tata Group chairman N Chandrasekaran has urged employees to maintain resolve amid criticism, describing the crash as the most heartbreaking crisis of his career. He encouraged the airline to use this tragedy as a catalyst for building a safer operation.
Despite the challenges ahead, there are reasons for optimism. Sanjay Lazar, an aviation consultant, pointed out that Air India boasts some of the world's best pilots and engineers. Enhanced safety inspections mandated by India's regulatory authority for all of the carrier's 787 Dreamliners may help reassure concerned passengers.
Historically, airlines often become more cautious following accidents, akin to a homeowner adding security measures after a burglary. Mr. Lazar noted that Air India will adhere closely to its standard operating procedures in the wake of this tragedy. Furthermore, the Tata Group may find solace in its partnership with Singapore Airlines, a globally recognized leader in aviation, which could play a vital role in helping Air India recover.
As Air India navigates this tumultuous period, its ability to effectively communicate and implement necessary changes will be critical to restoring passenger confidence and achieving its long-term transformation goals.
