The race for the Maharaja's crown of thorns — the Air India CEO's position — has entered its final stage, with the selection narrowing down to four names. These include AI chief commercial officer Nipun Aggarwal, erstwhile Vistara CEO Vinod Kannan (now senior vice president at Singapore Airlines), and two expatriates.
Board Meeting Scheduled
The airline's board is scheduled to meet on Thursday, and a decision may be taken as the delay in naming outgoing CEO Campbell Wilson's successor is adding to the troubles of the beleaguered airline during the toughest time for aviation globally since COVID-19. While the names of the expatriates shortlisted for the AI CEO role are not yet confirmed, the two Indians — Aggarwal and Kannan — are strong candidates. Kannan is an SIA veteran, while Aggarwal, a Tata veteran, has played a key role in AI ever since the airline's homecoming.
Urgency and Gravity of the Situation
“As of now, the new CEO's selection is not on the May 7 meeting agenda. But then who knows if the same is included, as the urgency and gravity of the situation is known to both the promoters — Tata Group and SIA — who are losing money. Apart from losses, AI's condition is beginning to hurt SIA's reputation too,” said a person in the know.
AI, along with low-cost AI Express, returned to the Tata fold in January 2022. This is the third time a hunt is on for a suitable CEO in just over five years. While Tata has invested thousands of crores in AI Group since then, the turnaround — both financial and operational — has been slower than anticipated due to both internal and external reasons. During the last financial year, AI is estimated to have registered losses of close to Rs 24,000 crore. There is also said to be disquiet within Bombay House over the losses of the new businesses, led by AI.
Turnaround and CEO Hunt Delayed
Just like AI's turnaround, the hunt for a new CEO is also taking longer than expected. Wilson had taken over as AI CEO in May 2022. Just two years later, he conveyed to Tata Sons and AI chairman N Chandrasekaran that he wanted to step down in 2026.
IndiGo, on the other hand, saw its schedule collapse last December. Since then, its CEO Pieter Elbers resigned, and the airline has announced his successor — former British Airways CEO William Walsh, who will take over by August 3. Given his focus on cost cutting that earned him the nickname of “Slasher” during his BA avatar, Indian aviation industry insiders had speculated Walsh might head AI given its runaway cost structure until IndiGo announced him as Elbers' successor.
Industry Insiders Weigh In
“IndiGo does not have a dearth of desi professionals who could have become the CEO. Naming an Indian for the top job could earn AI some brownie points that it badly needs. No one can say that an expat is the panacea for Indian airline woes after the stints of Elbers and Wilson,” said an industry insider.
