Airline Takes Strict Action Against Misconduct
Air India has terminated more than 1,000 employees over the past three years for ethical misconduct and policy violations, according to CEO and Managing Director Campbell Wilson. The action comes as the Tata Group-owned airline intensifies internal compliance measures while facing mounting financial pressure and operational challenges.
Speaking during a recent town hall meeting with employees, Wilson stressed the importance of integrity and discipline across all departments. He reportedly told staff that ethical conduct must remain a priority even when employees believe they are not being monitored. The airline has around 24,000 employees across its operations.
Misuse of Travel Benefits Under Scanner
According to reports, many of the dismissals were linked to misuse of the Employee Leisure Travel (ELT) system, which allows staff to access travel benefits. Air India also identified cases involving smuggling of onboard items and permitting excess baggage without proper charges being collected from passengers.
Sources earlier revealed that the airline had detected irregularities involving more than 4,000 employees connected to misuse of the leisure travel policy. The company has since initiated corrective action, including penalties and stricter monitoring systems.
Financial Pressure Drives Cost-Cutting Measures
The disciplinary action comes at a time when Air India is implementing aggressive cost-control measures amid financial difficulties. The airline has reportedly delayed annual salary increments and instructed departments to reduce discretionary spending and non-essential expenses.
Wilson also warned employees that the current financial year could become “very difficult” if geopolitical instability in the Middle East continues to impact aviation operations and fuel prices. Industry estimates suggest the Air India Group, including Air India Express, could post losses exceeding ₹22,000 crore for the financial year ending March 2026.
Tata Group Pushes Operational Reforms
Since returning to Tata Group ownership in 2022, Air India has been undergoing major restructuring and modernization efforts aimed at improving efficiency, service quality, and profitability. The airline has invested heavily in fleet expansion, branding, and operational upgrades while simultaneously tightening internal governance standards.
Industry experts believe the recent actions indicate the airline’s attempt to strengthen corporate discipline as it works toward long-term transformation in an increasingly competitive aviation market.
