Facing financial strain and operational hurdles, Air India has ramped up its internal compliance and cost-control efforts, leading to the dismissal of more than 1,000 employees in the past three years due to ethical misconduct and policy breaches.
Air India’s CEO and MD, Campbell Wilson, revealed the disciplinary actions during a town hall meeting, citing instances of violations such as misusing the Employee Leisure Travel system, smuggling items from aircraft, and allowing excess baggage without appropriate charges.
The airline’s stringent measures coincide with its financial struggles, with the Air India Group, encompassing Air India and Air India Express, expected to have incurred losses exceeding Rs 22,000 crore in the fiscal year ending March 2026.
Amid broader restructuring initiatives under the Tata Group, Air India has implemented various cost-saving strategies, including freezing annual salary hikes, curbing discretionary expenses, and reducing non-essential spending across departments.
In a concerning trend, Air India Express reported a substantial surge in losses in the previous fiscal year, as revealed in government data shared by Minister of State for Civil Aviation Murlidhar Mohol in a parliamentary response.
Air India’s CEO also cautioned employees about the challenging business landscape, highlighting uncertainties related to the Middle East situation that are impacting the global aviation sector, hinting at a potentially tough financial year ahead if conditions do not improve.
