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What Air India must do to arrest its freefall post Ahmedabad plane crash

What Air India must do to arrest its freefall post Ahmedabad plane crash

The Federal 11 months ago

The Air India plane crash in Ahmedabad, which killed more than 270 people, including 241 passengers, has not only exposed fatal cracks in the airline's operational safety but also eroded the Tata Group's grand ambition to reinvent it as a world-class carrier.

What was billed as the renaissance of India's flagship airline has turned into a damning indictment of misplaced priorities, poor maintenance culture, and a service record mired in mediocrity.

The rot runs deep

The crash of Flight AI171 on June 12 has thrown into sharp relief what whistleblowers and disillusioned passengers had been warning all along: that the rot runs deeper than branding exercises and aircraft orders.

More damning, however, are the growing concerns that Air India's maintenance protocols were either insufficient or inconsistently applied.

The Air India app may have been redesigned, and cabin crew retrained and dressed in new uniforms designed by Manish Malhotra, but the core experience remains alarmingly inconsistent.

Former pilots have alleged that cost-cutting and pressure to speed up market entry have outpaced safety investments.

"We've raised these issues before," said a retired Air India commander who refused to be named. "This was a disaster waiting to happen."

Reduced liability

When Tata Sons took over Air India in 2022, it promised nothing short of an aviation revival. The group's executives spoke of erasing decades of bureaucratic inefficiency and restoring pride to a brand once seen as the jewel of Indian skies.

But three years on, the mask of transformation has slipped.

The government had written off debt, waived several conditions regarding the retention of existing employees, and handed over the airline to Tata Sons, which came with several existing assets.

The Centre wrote off over Rs 61,000 crore of Air India's legacy debt and other liabilities before transferring the airline to the Tata Group. Of Air India's total debt of Rs 61,562 crore on August 31, 2021, the Tata Group took over Rs 15,300 crore, while the remaining Rs 46,000 crore (approx.) was transferred to a special-purpose vehicle called AIAHL for government settlement.

Avoidable errors

What the Air India owners had to do was focus on efficiency one step at a time. But that has been found wanting. There has been a litany of avoidable errors and passenger grievances under Tata's watch. Air India's reputation is on a free fall, with issues ranging from emergency landings and in-flight system failures to customer service scandals.

For an airline with ambitions of becoming a global player, the burden of proof is now immense. It must not only fix what went wrong but convincingly demonstrate that such lapses will not recur.

In 2024 alone, the airline's operations were involved in several incidents. A Delhi-San Francisco flight was stranded for days in Russia after an engine failure, and a Chicago-Delhi flight had to return midway when nearly all the lavatories stopped functioning.

Passengers have consistently complained of poor hygiene, broken seats, malfunctioning entertainment systems, and indifferent crew. Photos of stained upholstery and faulty equipment regularly surface online, undermining Tata's well-funded campaign to portray the airline as a reformed entity.

Renewed scrutiny

The consequences of this approach are now grimly visible. The crash has prompted renewed scrutiny of Tata Group's aggressive expansion strategy.

The Vihaan.AI plan, touted as a blueprint for Air India's rebirth, focused on global reach and modernised fleet procurement, including the world's most significant aircraft order from Boeing and Airbus. But ambition without foundational reform is a recipe for crisis.

"New planes can't fix an old culture," said a former executive at the DGCA. "You need deep institutional change, not just new jets and uniforms."

Indian passengers have an emotional connect with Air India and have continued to use its services despite the relentless monotony of complaints. However, their patience must be running thin, and they may even start looking at alternatives.

Internal voices

Even within the Tata Group, voices are reportedly growing louder over the poor and inefficient operations.

Passengers have consistently complained of poor hygiene, broken seats, malfunctioning entertainment systems, and indifferent crew. Photos of stained upholstery and faulty equipment undermine Tata's well-funded campaign to portray the airline as a reformed entity.

The Boeing Dreamliner that went down was a relatively new addition to the fleet. That fact alone has intensified scrutiny.

If a modern aircraft on an international route can experience such a catastrophic failure within seconds of take-off, the implications are chilling. Preliminary findings suggest possible mechanical failure involving the flaps and thrust control system.

Brand fallout?

India's Directorate General of Civil Aviation (DGCA) has ordered urgent inspections of Air India's Boeing 787 fleet, specifically those powered by General Electric's (GE) GEnx engines. One-time "additional maintenance actions" were mandated, including in-depth flight control checks and power assurance tests. That such protocols had not been routine speaks volumes about the gaps in oversight.

The crash has resulted in India's most significant aviation insurance claim, exceeding Rs 1,000 crore. Singapore Airlines, which holds a stake in the merged Air India-Vistara entity, has maintained a studied silence, but insiders say there is mounting concern about the brand fallout.

In India, domestic capital still holds it hand when it comes to fresh investment. India Inc. invested $29 billion abroad in 2024-25.

Combined with a disinvestment and repatriation of capital by existing foreign investors in India's real economy - we are not talking about portfolio flows - to the tune of $51 billion, this pushed India's net foreign direct investment in 2024-25 to a meagre $350 million.

This has its impact on employment.

Employed, jobless employed

India's official employment figures are not compatible with the definition adopted by the International Labour Organisation (ILO), which only counts paid work. In Indian figures, unpaid family labour is also counted towards employment.

While it is important to measure unpaid family labour to appreciate the economic value of such work, mostly performed by women, adding unpaid labour to employment statistics can have unexpected implications, apart from inflating employment numbers.

Consider the following exchange, in the immediate aftermath of an arranged wedding, between an elderly relative of the groom with the bride's brother.

"We were given to understand that the girl is employed, but it turns out she has never held a job in her life," says the elderly relative. "All we said was that the girl is employed," comes the reply. "In which world is a girl employed but does not have a job?" - the tone is growing testy. "Sir, we follow the government's definition of being employed."

While you decide whether the girl's family's claim was a lie, a damned lie or simply statistics, let us consider the sobering fact that half of India's workforce is above 45 years of age (this has been worked out by Prof Santosh Mehrotra of JNU), and ill-suited to adapt to the AI revolution about to sweep through the world of work. And, of the younger half, the proportion that has received an education that makes the worker capable of critical thought is minuscule.

Steady improvement in transport and logistics over the last 10 years has made the economy export-ready.

The rise of Narendra Modi and the flourishing of T20 cricket both give an edge to raw talent over pedigree. This has had the redeeming effect of removing the stifling hegemony of the genteel folk over the cultural consensus on what is proper or even possible.

The energy this releases can make for an implosion or expanded creativity. Sectarian politics that divides will lead to destruction. Inclusive politics and constructive policies can prepare the nation to revive growth and move forward with greater vigour.

(The Federal seeks to present views and opinions from all sides of the spectrum. The information, ideas or opinions in the article are of the author and do not necessarily reflect the views of The Federal.)

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