Air India Fired Over 1,000 Staff In Past Three Years Over 'Ethical Breaches', Says Ex-CEO

2026-05-12 02:18:25

(MENAFN- Khaleej Times) Air India has - over the past three years - reportedly terminated more than one thousand employees for ethical breach, including snatching things from aircraft, letting passengers carry extra baggage without charging them, and misusing the employee leisure travel scheme.

Outgoing CEO and managing director Campbell Wilson, who resigned last month, reportedly urged employees at a recent town hall meeting to act in the right way while carrying out their duties.

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Media reports quoted him as telling the staff that 2026 will be“a very, very difficult year” in view of the war in the Middle East.

Air India employs around 24,000 people. For the financial year ending March 31, 2026, Air India reported a loss of more than Rs220 billion (about Dh8.5 billion). The airline, which is planning to implement cost cutting measures and reduce flights because of the war, is also looking for a new head to steer it through these stormy times.

Last month, Goh Choon Phong, CEO, Singapore Airlines (which has a 25.1 stake in the airline), met N. Chandrasekaran, chairman, Tata Sons, and of Air India in Mumbai, and discussed the ongoing crisis, which has hit the airline badly. Last week, the airline board met and discussed measures likely to be taken including furloughs and deferred payment of bonuses.

Industry challenges

All the major airlines in India, which operate international flights, are facing a massive crisis in the wake of the US-Israel-Iran war. They have to take long detours while flying westwards to Europe and the US because of the closure of airspace over Iran and also Pakistan since May last year.

The airlines have had to pass on the hefty costs to passengers, many of who have cancelled their overseas trips or visits to India.

The weakening Indian rupee, the high cost of aviation turbine fuel (ATF) and airspace restrictions resulting in long diversified flights are adding hefty burdens on the carriers including Air India, IndiGo and SpiceJet.

The Federation of Indian Airlines (FIA), which represents these carriers, has warned the government that the airline sector in the country is under severe stress and on the verge of closing down or stopping all operations.

“The ATF pricing for international operations was increased by Rs73 per litre, making practically international operations along with domestic operations completely unviable and resulting in significant losses for the aviation sector in April 2026,” the FIA said.“The April pricing outcomes do not ensure parity between domestic and international operations.”

The Indian government has not hiked the ATF prices for the domestic sector. But for Indian carriers operating on international routes, the ATF now accounts for almost 60 per cent of operating costs, up from 40 per cent earlier.