Air India was struggling long before 787 crash

Air India hasn’t suffered crashes in its recent past, but it has been working to overcome a legacy of unprofitability and a reputation for shoddy service.

The carrier was a chronic money loser for the Indian government before it was privatized four years ago and purchased by Tata Sons, a holding company linked to one of India’s largest conglomerates.

Campbell Wilson, a New Zealander and veteran of the Singapore budget carrier Scoot, was brought in as chief executive. The Tata family pledged to take advantage of booming Indian travel demand and restore the airline to its former glory.

In a sign of confidence, Air India in 2023 placed what was then a record order for 470 Boeing and Airbus aircraft. Last year it ordered 100 more, which the company said signaled its commitment “to building a modern airline that India can be proud of." In the fiscal year ended March 2024, Air India Group, which includes related airlines under Tata, carried 40 million passengers and operated 800 daily flights.

Thursday’s crash was one of the world’s worst commercial aviation accidents this century. Shortly after takeoff, the London-bound jet descended into a residential area of Ahmedabad, one of western India’s most populous cities, and exploded in flames.

The investigation into the accident is focusing on whether the aircraft had a loss or reduction in engine thrust, according to people familiar with the probe.

The company said it was awaiting the results of the investigation. Natarajan Chandrasekaran, the chairman of Tata, said it would provide around $115,000 to the families of each victim and cover medical expenses for the injured.

“No words can adequately express the grief we feel at this moment," he said.

Air India’s budget sister airline, Air India Express, which today is also owned by Tata Sons, has had significant safety events over the years, including a 2010 accident where an aircraft ran off the end of the runway, killing 158 people on board.

The Tata family founded the airline in 1932, during the British colonial era, and it was nationalized in 1953 after India’s independence.

Under government control, the airline suffered from underinvestment and in recent years before it was privatized again, it was costing the government $3 million a day to run.

The new ownership group, which after a merger includes Singapore Airlines with a 25% stake, had been focusing on improving service. In an interview with The Wall Street Journal last year, Wilson, the CEO, lamented difficulties in acquiring the airline’s new seats, which in some planes hadn’t been significantly upgraded in more than a decade.

Well-heeled rivals such as Dubai’s Emirates and Qatar Airways were siphoning off demand. Some travelers would opt for indirect flights on rivals over direct flights on Air India. “It wasn’t roughly equal," Wilson said of the quality comparison between his airline and rivals.

Boeing 787 planes under construction in Everett, Washington.

Skytrax, a company that rates airlines’ service, says on its website that Air India has a “mixed product standard across its aircraft, and in some areas, the product is quite worn with better cabin maintenance and cleanliness levels required."

Mark Martin, an aviation consultant based in India, said that when he took an Air India flight last week the televisions didn’t work and the toilets malfunctioned. “It was pretty rough," he said. “It actually runs worse than it was being run by the government."

Kishore Chinta, an Indian aviation safety expert, said that while safety standards needed to be improved across Indian aviation, Air India had a reputation for employing top-flight pilots. He said problems with customer service shouldn’t be conflated with safety problems. “Air India is known to have a stellar record," he said.

It was the first fatal accident for Boeing’s 787 Dreamliner, which entered service in 2011. Analysts said investigators would likely look into factors such as pilot error, bird collisions, maintenance lapses or any other possible issues with the airline’s safety practices.