A catastrophic aviation disaster struck India’s skies on Thursday, as an Air India Boeing 787 Dreamliner crashed shortly after take-off from Ahmedabad, claiming 265 lives. The incident, one of the deadliest air disasters in Indian aviation history, casts a shadow over Air India’s ambitious transformation under the Tata Group, and has sent shockwaves through the civil aviation sector both in India and globally.

This tragedy comes at a particularly sensitive juncture for Air India—a carrier once plagued by years of mismanagement under government ownership, now undergoing a multi-billion-dollar makeover to reclaim its past glory as a world-class global airline with Indian roots.

A History Marred by Past Tragedies

The Ahmedabad crash is not the first in Air India's long and complicated history. Earlier disasters—such as the 2010 Mangalore crash that killed 158 and the 2020 Kozhikode runway overrun that claimed 18 lives—paint a picture of recurring safety lapses, especially under the previous government-controlled regime.

Notably, the latest crash marks the first fatal incident involving a Boeing 787 Dreamliner, a model widely touted for its safety, efficiency, and advanced technology. The flight reportedly lost control moments after takeoff, crashing into a nearby medical college complex. Only one passenger is believed to have survived.

A Critical Blow to Tata's Revival Dream

Since Tata Sons reacquired Air India in 2022, the airline had been on a path of aggressive revival. Once a symbol of Indian aviation excellence, Air India had become synonymous with financial instability, outdated fleets, and sub-par service quality. The ₹180 billion ($2.4 billion) deal marked both a return to roots—given Tata's founding of the airline in 1932—and a rescue operation for the beleaguered flag carrier.

The Tata Group undertook a massive overhaul, including:

• An order for 470 aircraft, the largest in Indian aviation history.

• A fleet-wide repainting and retrofitting campaign.

• Integration with Vistara, its joint venture with Singapore Airlines.

• A new brand identity and customer experience enhancement programs.

Despite early hurdles, Air India had significantly reduced its losses, from ₹11,387 crore in FY23 to ₹4,444 crore in FY24, according to CEO Campbell Wilson. The airline had aimed for profitability by FY27.

However, this disaster throws a wrench in that trajectory. It not only risks damaging customer trust but may also prompt regulatory scrutiny, operational delays, and a possible reevaluation of its Boeing partnership—especially with 43 aircraft in its fleet over 15 years old, per civil aviation ministry data.

Air India's Aging Fleet Under the Scanner

One of the most pressing concerns now is the age and condition of Air India’s aircraft. Although the crashed Boeing 787 was 11 years old and still well within its serviceable lifespan, the incident raises serious concerns about maintenance protocols, safety audits, and fleet modernisation timelines.

• 27 Air India aircraft are between 10–15 years old.

• 43 aircraft are over 15 years old.

• Its low-cost arm, Air India Express, operates 101 aircraft, 37% of which exceed 15 years.

These statistics are worrying, particularly when competitors like IndiGo boast significantly newer fleets. Additionally, passenger complaints regarding broken seats, filthy cabins, and malfunctioning entertainment systems continue to tarnish the airline’s image.

In 2024, the UK Civil Aviation Authority listed Air India as the worst airline in Britain for delays, with an average of 46-minute departure delays, according to a Reuters report. Meanwhile, pilot protests, staffing shortages, and operational disruptions have plagued the carrier’s transformation efforts.

Global Repercussions for Boeing

The impact of the crash also reaches Boeing’s global operations. Already under intense pressure after previous issues with the 737 Max series, this incident involving a Boeing 787 Dreamliner—a model known for fuel efficiency and long-haul capability—deals a fresh blow to the company.

The Aviation Safety Network confirms this as the first fatal crash of a 787. Boeing has responded with a statement saying it is “working to gather more information”. Meanwhile, aviation consultants have warned that while the crash might not end Air India’s Boeing commitments, it could lead to delays in future orders, operational overhauls, or regulatory restrictions.

Corporate and National Mourning

In a somber address, Air India CEO Campbell Wilson said, “This is a difficult day for all of us at Air India. Our efforts now are focused entirely on the needs of our passengers, crew members, their families and loved ones.”

Tata Sons Chairman Natarajan Chandrasekaran expressed profound grief, announcing an ex-gratia payment of ₹10 million to the families of victims, along with full coverage of medical bills for the injured. “No words can adequately express the grief we feel at this moment,” he stated.

Ongoing Investigation and International Probe

The Directorate General of Civil Aviation (DGCA) has initiated an inquiry, and international aviation bodies are expected to be part of the multi-agency investigation. The black box has been recovered, and forensic teams are working to determine whether the cause was pilot error, technical malfunction, or external factors.

Eyewitness accounts and preliminary CCTV footage show the aircraft struggling to gain altitude shortly after takeoff. Full crash reports are expected in the coming weeks.

Historical Perspective: A Legacy of Crashes

This crash is reminiscent of Air India's troubled history with aviation disasters:

• 1978: Air India Boeing 747 crashes into the Arabian Sea—213 deaths.

• 1988: Indian Airlines Flight 113 crash in Ahmedabad—over 130 dead.

• 1993: Aurangabad crash—55 dead.

• 2000: Patna crash—50+ dead.

• 2010: Mangalore crash—158 killed.

• 2020: Kozhikode crash—18 dead.

Each of these events occurred during government control, a period often criticized for its bureaucratic inefficiencies, lack of innovation, and reactive safety culture.

Conclusion: A Tragedy Amid Transformation

As India mourns the loss of 265 lives in this devastating crash, Air India finds itself at a crossroads. The transformation envisioned by Tata Group, once full of hope and ambition, now faces its biggest test yet.

Public trust, investor confidence, and global aviation credibility hang in the balance as the investigation unfolds. The crash has deeply shaken the airline’s revival narrative, reminding all stakeholders that safety and operational excellence must always accompany branding, fleet expansion, and privatisation.

The world watches as Air India attempts to rise again—not just from the wreckage of a plane, but from the legacy of failures and the immense responsibility of rebirth.

The Upcoming IPOs in this week and coming weeks are HDB Financials, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures, Eppeltone Engineers, Patil Automation, Samay Projects Services.

The Current active IPO are Oswal Pumps, Aten Papers, Monolithisch India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.