Air India CEO Campbell Wilson Steps Down Amidst Losses And Operational Setbacks

New Delhi: Air India CEO Campbell Wilson has reportedly stepped down amidst persistent losses and operational challenges. The CEO's resignation comes at a crucial time, when the Tata Group, which acquired Air India in 2022, seeks to revamp the airline's fortunes. However, Wilson will continue to serve until a successor is appointed, ensuring a smooth transition.

Campbell Wilson, who took the helm in July 2022, had been tasked with turning around the airline's reputation and finances. However, Air India has struggled with rising costs, operational pressures, safety lapses, including a fatal crash in June 2025 that killed 260 people, and operational issues such as flight cancellations and delays. The airline's financial performance has also been underwhelming, with Wilson's tenure marked by efforts to modernise the fleet and expand routes. 

Air India has been undergoing a massive restructuring effort, including the merger of four airlines into two: Air India and Air India Express. The airline has also invested heavily in modernising its fleet, with plans to acquire 470 new aircraft. Wilson had previously stated that the airline's long-term goal is to grow its market share to 30% both domestically and internationally by 2027.

Wilson's Resignation Accepted

According to reports, Air India's board accepted Wilson's resignation during a meeting last week, with the search for a new CEO already underway. The discussions with possible candidates are reportedly at an advanced stage, with a key meeting expected in the coming days. Wilson's decision to step down was reportedly communicated to the board earlier this year, citing his desire not to continue beyond his contract period.

The leadership change is attributed to several factors, including Wilson's inability to successfully implement Air India's transformation project, curb losses, and expand operations. The airline is facing major headwinds, including airspace restrictions due to the West Asia crisis, delays in aircraft deliveries, and the fallout from the June 2025 crash of Flight AI 171.

Reports further suggested that Wilson's contract was set to expire in mid-2027. It is suggested that the decision is likely linked to Air India's failure to meet its operational targets, including breaking even by March 2026. The external challenges, such as supply chain issues affecting aircraft deliveries and Pakistan's closure of airspace to Indian carriers, have also impacted Air India's financial performance.

Challenges Mount For Air India

The airline is undergoing a major storm of challenges, with airspace restrictions forcing it to take longer routes and add fuel stops, increasing operating costs. The delays in aircraft deliveries have constrained capacity expansion plans, adding to the pressure on operations. The fatal crash of Flight AI 171 last year has also taken a toll on the airline's operational environment and public perception.

Air India's financial woes are evident, with projected losses expected to reach Rs 20,000 crore in FY2026. The airline's standalone revenue rose 13% to Rs 61,080 crore in FY25, but losses narrowed to Rs 3976 crore from Rs 5031 crore a year earlier. The airline's debt, excluding lease liabilities, jumped 61% to Rs 10,087 crore. 

Search For Successor

The search for a new CEO is underway, with candidates expected to have strong global experience in running a full-service airline, familiarity with low-cost operations, and a track record of success. The next CEO will face big challenges, including navigating the airline's operational and financial pressures, while also addressing the fallout from the fatal crash. 

Wilson, who joined Air India from Singapore Airlines' low-cost subsidiary Scoot, is credited with stabilising the airline during its early post-privatisation phase. He led the airline's ambitious turnaround plan, which included fleet expansion, route rationalisation, and improving customer service. The airline has yet to issue an official statement on Wilson's resignation.