Air India Staff Terminations News: Tata Group-owned Air India has terminated more than 1,000 employees over the last three years for ethical violations, according to the airline’s Chief Executive Officer and Managing Director Campbell Wilson. The remarks were made during a town hall meeting with employees on Friday, sources said.
Wilson told staff that the airline has taken strict action against employees found involved in misconduct, including smuggling items off aircraft and allowing excess baggage without charging passengers. He also pointed to widespread misuse of the Employee Leisure Travel (ELT) system by employees, stressing that such practices would not be tolerated.
According to sources, Wilson said the airline had removed “more than 1,000 people for ethical breach” during the past three years. He reportedly reminded employees that they are expected to act responsibly even when no one is watching.
The development comes at a time when Air India is implementing multiple cost-cutting measures amid growing financial challenges. The airline has reportedly held back annual salary increments for employees and asked departments to reduce discretionary spending and non-essential expenses.
Air India currently employs around 24,000 people across its operations. The airline has been undergoing a large-scale transformation process since returning to the Tata Group in 2022. However, rising operational costs and external geopolitical challenges have added pressure on the carrier’s financial performance.
During the town hall, Wilson also warned employees that the current financial year could become “very, very difficult” if conditions related to the Middle East situation do not improve. While no further details were shared publicly, the statement reflects concerns over operational and economic uncertainties affecting the aviation sector.
In March this year, sources had informed PTI that Air India detected large-scale discrepancies in the use of its leisure travel policy. The internal review reportedly involved more than 4,000 employees. Corrective measures, including penalties against employees found violating rules, were initiated by the airline.
The Employee Leisure Travel policy allows airline staff and eligible family members to travel under specific company-approved benefits. However, the airline found irregularities in how the system was being used. Wilson reportedly highlighted the issue during the meeting and said such misuse damages organisational discipline and accountability.
The airline group, which includes Air India Express alongside Air India, is projected to have recorded losses exceeding Rs 22,000 crore for the financial year ending March 2026. The financial stress has pushed the airline to tighten internal controls and reduce avoidable expenditures.
Industry observers note that airlines globally continue to face pressure from high fuel prices, operational costs, supply chain disruptions, and fluctuating international conditions. Air India’s internal restructuring efforts are taking place against this broader backdrop.
The airline management has not publicly disclosed how many employees were terminated specifically for ELT misuse or other categories of ethical violations. However, Wilson’s remarks indicate that the company is adopting a stricter compliance-driven approach as it attempts to improve operational efficiency and financial stability.
Employees attending the town hall were also informed about the need for discipline, accountability, and adherence to company policies as the airline navigates ongoing financial and operational challenges.
