Ahmedabad plane crash: Air India’s legacy, overhaul, and a blow to its ‘world-class airline’ makeover

An Air India Boeing 787 Dreamliner crashed shortly after take-off from Ahmedabad on Thursday, killing 265 people. It is the deadliest crash involving the airline since Air India's privatisation in 2022. The aircraft, en route to London Gatwick, was 11 years old. Only one passenger survived and a formal investigation is underway, however, the cause remains undetermined.

Air India was started by entrepreneur JRD Tata in 1932, before being taken over by the Indian government in 1952. It was once a symbol of Indian aviation excellence under JRD Tata, experienced years of financial losses and operational inefficiencies while it was under government control. Past crashes include the 2010 Mangalore accident that killed 158 and the 2020 Kozhikode runway incident, which left 18 dead. Both incidents involved older Boeing 737s.

In 2022, Tata Sons acquired Air India in a $2.2 billion deal, thus marking its return to private hands. CEO Campbell Wilson described the airline at the time as being in 'absolute shambles', with many aircraft having seen no upgrades since 2010. The Tata Group aimed to transform the airline into a global competitor with a focus on modernisation, safety, and service. It currently flies to 43 domestic and 41 international destinations and operates 191 aircrafts, a mix of narrow-and wide-body models from both Airbus and Boeing.

Though they aspired high, and despite expansion or new aircraft orders, the airline faces persistent service complaints. Many planes are outdated, about 43 of its 198 aircraft are over 15 years old. Over the years passenger have also raised several complaints including delays, broken seats, and unclean cabins. In May 2024, Air India was ranked the worst airline in the UK for flight delays, averaging 46 minutes late.

Air India posted a ₹4,444 crore loss in FY24, down from ₹11,387 crore in FY23. While losses are reducing, the airline is still not profitable. An internal presentation targets FY27 for profitability. However, closure of Pakistani airspace may delay this target along with now the Ahmedabad plane crash which will pose a serious damage to the airline profit aspirations.

Tata Group merged Air India and Air India Express with its existing carriers Vistara and AIX Connect in November 2024 to form India's largest airline group, giving tough competition to IndiGo. Singapore Airlines which started full-service carrier Vistara with the Tatas, is a 25 per cent owner of the combined Air India Group. Tehy had earlier, in mid-2023 unveiled a new logo, branding and plane livery.

The Ahmedabad crash marks the first fatal accident involving a Boeing 787 Dreamliner globally. The model, which was introduced for fuel efficiency and long-haul capability, had previously avoided major incidents, however it has received several complaints even in the past. Analysts believe this incident may not affect existing Boeing orders but will raise safety scrutiny. In 2023, Air India has given a big order to transform its fleet, this order included 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliners and 10 Boeing 777X widebody aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo and 190 Boeing 737MAX narrowbody aircraft.

The crash has delivered a severe blow to Air India’s efforts to rebrand itself as a world-class airline. Now, with renewed public scrutiny and operational risks now under the spotlight, the challenge remains whether Tata Group can deliver on its transformation promises while ensuring passenger safety and satisfaction.