Air India CEO Campbell Wilson is set to resign as chairperson of the airline’s budget division, Air India Express, with Nipun Aggarwal, the chief commercial officer, taking over the role, according to a memo issued on Tuesday. This change occurs amid an extensive restructuring process for the airline, which was previously owned by the government.
In addition, Wilson will step down from the Air India Express board, with COO Basil Kwauk appointed as his successor. Both Aggarwal and Kwauk will maintain their current positions as well, as indicated in the memo circulated by Wilson.
Air India is currently undergoing a significant transformation, following its acquisition by Tata Group two years ago. The group has merged four airlines into two distinct brands: the full-service Air India and Air India Express, which itself combined with AirAsia India last year to form a larger entity. Leadership changes have taken place across both airlines during this period.
Wilson noted in the memo, which was reviewed by Reuters and confirmed by a representative from Air India Express, “Now that the structural adjustments are primarily completed, our focus will shift to maximizing and optimizing the Group’s fleet, network, sales, distribution, and loyalty programs.”
Aggarwal joined Air India in January 2022 after contributing to the acquisition deal with Tata and has since been in charge of various areas including aircraft procurement, financing, and strategic planning. Recently, reports surfaced that Air India is contemplating a multi-billion dollar order for a significant number of widebody aircraft.
However, delays in the delivery of jets have hindered the airline’s recovery efforts, compelling it to retain older aircraft longer than intended, which is increasing maintenance expenditures and obstructing modernization and growth plans, despite the surge in air travel.
Following a Bloomberg News report on China’s directive to its airlines regarding halting further deliveries of Boeing planes amidst a trade conflict, an industry insider informed Reuters that Air India might be interested in acquiring jets that are being rejected by China for its low-cost operations, although the situation remains dynamic.
Both Air India and Boeing have not yet provided comments regarding these developments, and Air India Express, which aims to complement the service routes of its parent company, chose not to respond to inquiries.
Air India Express operates a fleet of over 100 aircraft, consisting of 68 Boeing 737s and 36 Airbus A320s. The airline anticipates expanding its fleet by approximately 15 aircraft during the current fiscal year, which commenced on April 1, with several to be sourced from Air India.