Indian aviation is facing a 'trial by fire'! Airlines are caught between the path of change and crisis

Three Indian airlines, which carry more than 90 percent of domestic passengers, are undergoing changes due to the departure of their CEOs. On Tuesday, Air India officially announced the departure of its Chief Executive Officer and Managing Director Campbell Wilson. 

With this, he joins the list of two other airline leaders who have already stepped down from their positions. Aloke Singh, Managing Director of Air India's low-cost arm,

Air India Express, left the airline on March 19 after completing his five-year term, while IndiGo announced the sudden departure of Dutch national Pieter Elbers on March 10. IndiGo has appointed former British Airways CEO William Walsh as its new CEO, although regulatory approval is still pending.

Meanwhile, Air India's board has formed a committee to find a replacement for Wilson in the coming months. He will continue in both positions until a replacement is found. 

Air India Express has also not yet announced a replacement for Singh. Singh currently serves as Chief Strategy Officer at IndiGo. 

In the rapidly growing Indian domestic aviation market, where fears of a duopoly are a reality, the functioning of Air India Group and IndiGo is crucial – both for customer choice and future growth. Let's explore this issue in detail.

Air India: From crash to intense scrutiny

For Air India, the series of events began with the crash of a Boeing 787 near Ahmedabad in June 2025, which claimed the lives of 260 people. 

Following this incident, regulators launched a strict investigation and closely monitored the airline's operations. In the months that followed, regulatory concerns were not limited to the crash.

According to media reports, Air India was reprimanded for safety lapses. These lapses included flying aircraft without valid airworthiness certificates and operating aircraft without checking emergency equipment. The airline later acknowledged that it needed to improve compliance with regulations and internal procedures.

Additionally, the airline's recovery efforts were also hampered by external factors. Pakistan's closure of its airspace to Indian aircraft forced aircraft on key international routes to take longer routes, increasing fuel consumption and operating costs.

The ongoing conflict in West Asia further exacerbated the disruption. In a note to employees in March, Wilson reported that Air India had canceled nearly 2,500 flights to the region over three weeks. 

Due to airspace restrictions and airport closures, the airline was only able to operate 30% of its normal Middle East schedule, 

and he warned of serious financial consequences. These disruptions also impacted routes to Europe and North America, resulting in flight rerouting and increased costs.

Financial pressure continued to mount. Air India and its low-cost subsidiary posted a combined loss of ₹98.08 billion in 2024-25, even as the airline continued to invest in expanding and refurbishing its fleet.

IndiGo: December disruptions and their consequences

While Air India grappled with security checks and external disruptions, IndiGo faced its own set of challenges at the end of the year. In December 2025, the airline faced widespread disruptions. 

It canceled nearly 4,500 flights in the first few weeks of the month. The airline later explained that it had been unable to update crew rosters in time to comply with stricter pilot fatigue regulations.

The government's response to Parliament pointed to internal problems, including over-optimization of operations, deficiencies in regulatory preparedness, and shortcomings in system support and operational controls. 

These findings led to stricter oversight. Officials increased scrutiny of the airline's operations and intensified scrutiny of crew availability, roster reliability, and system robustness. 

These disruptions also had an impact at the top level. According to a regulatory filing by the airline, Elbers resigned from his position in March, and Managing Director Rahul Bhatia took over on an interim basis.

A wave of pressure, two resignations

These pressures on both airlines emerged amid rising costs, regulatory changes, and geopolitical uncertainty. The airlines faced operational challenges due to rising fuel prices, increased insurance costs associated with conflict zones, and restricted airspace. 

IndiGo's operations were also impacted by these conditions, despite continuing its expansion efforts while managing the fallout from the December disruptions. For Air India, this leadership change comes as the airline continues its turnaround process under the ownership of the Tata Group.

Indigo