Air India’s next CEO: Four leaders shortlisted as board prepares for May 7 decision

The search for a new chief executive at Air India has entered its final phase, with four candidates shortlisted ahead of a key board meeting scheduled for May 7, as the airline navigates one of the most challenging periods for the aviation sector since the pandemic.

The shortlist includes Nipun Aggarwal, the airline’s chief commercial officer, and Vinod Kannan, former chief executive of Vistara and currently a senior vice president at Singapore Airlines, along with two expatriate candidates whose identities have not been publicly confirmed. The development has been reported by PTI.

Leadership decision gains urgency

The board of Air India, chaired by N Chandrasekaran, is expected to meet in Mumbai on May 7 to discuss a range of issues, including financial performance, cost-saving measures, and leadership succession.

While sources indicate that CEO selection may not be formally listed on the agenda, industry insiders suggest the urgency of the situation could push the matter into discussion.

The delay in naming a successor to outgoing CEO Campbell Wilson has added to internal and operational pressures, particularly as the airline continues to report significant losses.

Wilson, who took over in May 2022, has indicated his intention to step down in 2026.

Candidates reflect internal and external mix

The shortlist reflects a combination of internal experience and external leadership options.

• Nipun Aggarwal has been closely involved in Air India’s operations since its return to the Tata Group
• Vinod Kannan brings experience from both Vistara and Singapore Airlines
• Two expatriate candidates are also under consideration, though details remain undisclosed

According to industry sources cited by The Times of India, both Aggarwal and Kannan are considered strong contenders.

The inclusion of expatriate candidates highlights the airline’s continued openness to global leadership, even as some industry voices argue for a domestic appointment.

Financial strain shapes the decision

The CEO selection comes at a time of mounting financial pressure.

Key financial indicators underscore the scale of the challenge:

• Air India is estimated to have recorded losses of nearly ₹24,000 crore in the last financial year
• Separate projections suggest losses of over ₹22,000 crore for FY2025-26
• The Tata Group has invested thousands of crores into the airline since its acquisition in January 2022

The slower-than-expected turnaround has raised concerns within the group, with sources indicating unease over continued losses.

The CEO appointment is therefore seen as critical to accelerating both financial recovery and operational stability.

External pressures complicate recovery

Air India’s challenges are not limited to internal restructuring.

The airline is facing industry-wide headwinds linked to the West Asia conflict, which has disrupted airspace and increased operating costs.

Campbell Wilson, in a recent message to staff cited by PTI, highlighted the impact of these developments.

He noted that rising jet fuel prices and longer flight routes have made many international services unprofitable.

“… massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate,” he said.

Additional pressures include:

• A more than 5% increase in international aviation turbine fuel prices in May
• Route diversions leading to higher fuel consumption
• Reduced demand due to higher fares linked to fuel surcharges

Wilson also indicated that international flight schedules have already been trimmed and may face further reductions in June and July.

Cost measures under consideration

In response to rising costs, Air India is evaluating additional cost-control measures.

These include:

• Potential unbundling of meals from ticket pricing
• Optional lounge access for business class passengers
• Further optimisation of flight schedules

Sources emphasise that these measures are still under consideration and no final decisions have been taken.

The board is expected to review these proposals alongside broader financial and operational strategies at the May 7 meeting.

Industry context adds pressure

The leadership transition is unfolding against a backdrop of wider stress across the aviation sector.

On April 26, Air India, IndiGo, and SpiceJet jointly told the government that the industry is under extreme financial strain and close to halting operations without policy support.

Globally, airlines are also facing similar challenges. The International Air Transport Association, led by Willie Walsh, has warned of potential jet fuel shortages in Asia and Europe, with high fuel costs already reflected in ticket prices.

The May 7 board meeting is expected to be a pivotal moment for Air India’s leadership and strategy.

While a final decision on the CEO may or may not be announced immediately, the narrowing of the field to four candidates signals that the process is approaching conclusion.

The choice of leader will shape the next phase of Air India’s transformation, as it attempts to stabilise finances, manage external shocks, and deliver on the expectations of its owners, the Tata Group and Singapore Airlines.

For now, the airline stands at a critical juncture, balancing leadership transition with the demands of a volatile operating environment.