Two months after Air India’s Chief Executive Officer (CEO) resigned, Nipun Aggarwal and Vinod Kannan have now emerged as the frontrunners to take over the helm of Air India, as the Tata Group is considering a leadership change that could determine the airline’s future as it navigates one of the most turbulent periods in its history.
Who are the two frontrunners to lead Air India?
According to The Financial Times, while Aggarwal, ‘s chief commercial officer (CCO) and a key architect of the airline’s transformation strategy, is a strong internal candidate, Kannan is the former chief executive of and brings extensive leadership experience after leading the carrier before its merger with Air India.
Among Aggarwal and Kannan, supporters view the former as a more disciplined executive who is focused on costs and operational efficiency. However, questions remain over whether Aggarwal has adequate experience to run a global full-service . A person familiar with the matter said the troubled airline needs “financial discipline; to lead the company you need other skills as well.” A former Air India director echoed the sentiment and said that Aggarwal had “no experience” running the kind of full-service airline that Air India aspired to be, thereby keeping Kannan in the race.
Kannan, with his experience, is widely respected in the for overseeing operations at Vistara, the premium airline before it merged with Air India in 2024, and is seen as someone who has stronger operational airline experience.
Uncertainty over new Air India CEO looms: Here’s why
A final decision on who will lead Air India is still pending, as a power tussle within continues to complicate the succession process. Citing sources, the report noted that while Nipun Aggarwal is reportedly enjoying the support of Tata Sons chairman , the latter has been cautious about making a final decision as questions loom over his own future at the conglomerate. The uncertainty over who will take over the helm of Air India stems from an ongoing debate within Tata Sons over its chairman’s tenure, which is due to end in February next year.
While most board members are reportedly supportive of extending Chandrasekaran’s term, , chairman of Tata Trusts and the principal shareholder of Tata Sons, has opposed another stint for the veteran chairman.
Wilson’s early exit fuels search for new CEO
The search for a new CEO comes after former CEO Campbell Wilson resigned in April, before his tenure ended. Citing a source familiar with his departure, The Financial Times reported that New Delhi’s poor air quality and pollution levels were among the reasons he cited to Chandrasekaran when he first indicated his desire to resign in December.
Earlier in January, Reuters reported that the troubled airline was actively looking to replace Wilson amid heightened scrutiny from regulators following the deadly last June, which claimed 260 lives.
Troubled times for Air India
According to reports, whoever takes charge of Air India will inherit an airline that is dealing with multiple challenges. Following the crisis in this year, the carrier has been compelled to reduce flight capacity by up to 20 per cent, as geopolitical tensions disrupted operations and pushed up fuel costs.
The carrier’s operations were further strained after Pakistan shut its airspace last year following the four-day military conflict in May, which was a result of . The Economic Times reported that the carrier reportedly told the government that the airspace restriction could cost it roughly $600 million annually because of its extensive international network.
In the financial year ending on 31 March, Air India posted a loss of around $2.8 billion, although , which holds a 25 per cent stake in the carrier, said the airline was continuing to advance its aircraft refurbishment programme and fleet renewal efforts.