Air India hikes airfare for domestic flights after CEO resigns

On a day the Tata Group-owned Air India announced that its CEO and MD Campbell Wilson has resigned and the airline has set up a committee to find his successor, the airline on Tuesday also hiked the airfares for domestic flights due to the ongoing West Asia conflict. Indigo was the first airline to increase the fares.

The revised Air India fares are distance-based, replacing the earlier flat charge. This means the extra amount a passenger pays will now depend on how far they are flying. For short-haul flights of up to 500 km, passengers will pay an additional INR 299. For routes between 501 km and 1,000 km, the surcharge has been set at INR 399.

Flights covering 1,001 km to 1,500 km will attract a surcharge of INR 549. For longer domestic routes between 1,501 km and 2,000 km, passengers will pay INR  749. For flights above 2,000 km, the surcharge goes up to INR 899, which is the highest among domestic categories. These revised charges will come into effect from 9:01 am IST on April 8.

As regards the shake-up at the top level in the airlines, Wilson, a native of New Zealand and a former Singapore Airlines’ veteran,  has been at the helm of the airline for four years as Chief Executive Officer and Managing Director.  “Wilson had conveyed his intention to step down in 2026 to Air India Chairman N Chandrasekaran in 2024 and, since then, has been working to ensure the organisation and leadership team are on a stable footing for the transition,” the airline said in a statement. The Air India board has constituted a committee that will find the successor in the coming months, it said.

Wilson, who took the reins of the airline in September 2022 following the privatisation of the then government-owned carrier, will continue in the position till his successor is announced, the statement added.

Wilson had been under fire following the crash of the airline’s London-bound flight in Ahmedabad on June 12, which killed over 250 people, and also for alleged violations of safety norms on various other occasions.

Tata Sons Chairman N Chandrasekaran appreciated the contribution of Wilson and said under his leadership Air India made progress on several fronts. “...it is also worth acknowledging the numerous external challenges navigated by the Air India team, including prolonged post-Covid supply chain constraints that have impacted delivery of new aircraft and retrofit programmes as well as major geopolitical and other headwinds,” he said.

Wilson said, “The four years since Air India’s privatisation has seen the acquisition and successful merger of four airlines, an evolution from public to private sector practices along with renewal of the leadership team, workforce, culture and ways of operating.” Air India has seen the complete modernisation of systems, the launch of new physical products, and deployment of elevated service standards on ground and in the air, as well as 100 additional aircraft added to the fleet, he added.

 Air India’s low-cost subsidiary, Air India Express, also does not have a head since March 19 this year following the exit of then Managing Director Aloke after he completed his 5-year tenure.