Air India’s Tragic Setback: Tata-led airline brand under scanner

As the national carrier mourns a devastating tragedy amid a turnaround under Tata Group, brand experts say rebuilding trust will take more than optics — starting with honesty, empathy, and transparent action.

By  Akanksha NagarJun 16, 2025 9:25 AM
Air India’s Tragic Setback: Tata-led airline brand under scanner
On Thursday, an Air India Dreamliner flight en route to London crashed shortly after takeoff from Ahmedabad, slamming into a medical college hostel and triggering a massive fire.

The fatal crash of Air India’s Ahmedabad–London flight has left India in mourning and thrust the Tata Group’s ambitious airline revival into crisis mode. As investigators continue to probe the cause of the disaster, public scrutiny has turned sharply toward Air India’s recent transformation efforts, and whether its legacy baggage is proving too heavy for a smooth takeoff.

For Air India, the tragedy represents not just a devastating loss of life, but a high-stakes reputational setback. The crash threatens to derail a complex turnaround strategy spearheaded by Tata Sons, which re-acquired the airline in 2022 after decades of state control. The Tata Group, revered for its corporate stewardship, now finds itself at the center of a storm that tests not just its leadership but its promise to restore one of India’s most iconic, and troubled, brands.

An Airline Still Fighting Old Demons

Air India’s reputation has long been marred by operational inefficiencies - delays, unclean cabins, inconsistent service - many of which persisted even after the Tata takeover. Passengers often cited aging aircraft and lackluster customer service as emblematic of the carrier’s broader decline under government ownership.

In December 2022, in an effort to shed that past, Tata brought on London-based consultancy Futurebrands to lead a sweeping rebranding effort. The result: a new logo, fresh livery with gold, red, and purple tones, and a visual break from the cheerful but outdated Maharaja mascot.

Yet despite the cosmetic makeover and the change in ownership, systemic challenges endured.

Transformation in Progress—but Perceptions Lag

In a recent interview with CNBC-TV18, weeks before the crash, Air India CEO Campbell Wilson outlined a five-year strategy aimed at repositioning the airline as a world-class global carrier with a distinct Indian identity. He described a journey from “stabilization” to “sufficiency” and now “efficiency.”

Since 2022, Air India has grown its fleet from under 100 to nearly 300 aircraft, bolstered by a historic 470-aircraft order. The airline has also invested in modernizing infrastructure, IT systems, product quality, and staffing.

“These are not short-term fixes,” Wilson said. “This is a sustained transformation to build long-term financial and operational strength.”

But the crash has thrown a spotlight on the slow pace of perceptible change.

“Not Just a Setback—It’s a Blow to a Brand Already Under Pressure”

Santosh Desai, Managing Director and CEO of Futurebrands India, acknowledged the severity of the crisis, emphasizing that while any airline would be impacted by such a tragedy, Air India’s situation is uniquely precarious.

“There’s already a sense of public disappointment with how little visible change has occurred since the Tata takeover,” he said. “When an incident like this happens, it compounds that disappointment and makes the brand seem even more vulnerable.”

Air India’s core issue, he argued, lies in the lingering association with inefficiency. “Despite a change in ownership, passengers don’t feel a significant difference. Add to that a major crash, and the trust deficit widens. This is more damaging for a brand like Air India.”

Desai praised the Tata Group’s immediate response - transparent communication, leadership visibility, and financial support for victims’ families - but warned that reactive gestures must give way to ongoing, substantive engagement.

“One complaint I would have against the Tata and Air India is that they are not communicating the reality of the problems. Their communication should be much more centered around the steps they are taking in terms of how they are improving; they should be sharing a report card with the public. What they instead do is some fancy advertising— beautiful but utterly meaningless. We (consumers) want to know how Air India is going to improve.”

He added, “They have shied away from answering hard questions. And I think this crash will put even more pressure. It’s high time they stop running away from the problem and start communicating in a real sense with consumers. That is the expectation that most people will have from Air India.”

A Pivotal Moment for Public Trust

Samit Sinha, Founder of Alchemist Brand Consulting, echoed the urgency of this moment. “Just as the airline was trying to distance itself from its past, this crash risks reinforcing fears about safety and competence.”

He compared the situation to Boeing’s well-documented issues with the 737 Max, cautioning that mishandled crises leave lasting damage. “Public memory may be short, but reputational scars run deep. Air India needs to show that its heart is in the right place. Do the right thing, and do it transparently.”

Lloyd Mathias, a senior brand strategist, said the Tata Group’s swift and compassionate response was a good first step. “They’ve started well—owning up and commiserating with victims’ families, announcing ₹1 crore in compensation, and sending counselors. But legacy operational issues remain. The real test will be when flyers actually feel a meaningful improvement in experience and safety.”

He added that while the Tata Group enjoys strong consumer trust, that confidence doesn’t automatically extend to Air India. “This is an acquired brand, and the bulk of travelers still feel there hasn’t been a dramatic improvement. The rebranding looks great—the new livery, cabin crew uniforms, even the music. But passengers judge airlines by punctuality, consistency, and service—and that change is still a work in progress.”

Boeing’s Burden, Air India’s Accountability

As the investigation unfolds, questions are also being raised about Boeing, whose safety standards—particularly with the 737 Max—have come under fire in recent years. But as experts point out, the airline typically bears the brunt of public reaction, not the aircraft maker.

“Most passengers don’t know or care whether it’s Boeing or Airbus,” said Mohit Hira, co-founder of Myriad Communications. “It’s Air India’s logo they see. If this is a technical fault, Boeing will take a hit. But if it’s operational or human error, the impact on Air India will be far deeper.”

He added that the public’s emotional trust, while hard to quantify, is critical to the brand’s survival. “Passengers today have few alternatives for international travel from India. But emotional trust still matters. The airline’s response, both immediate and long term, will decide if flyers feel safe and respected. The crew, too, are brand custodians—their confidence can either reinforce or undermine trust.”

A Make-or-Break Moment

Nisha Sampath, Managing Partner at Bright Angels Consulting, called this a “make-or-break” moment for both Air India and the Tata Group. “Air India is a brand that has come with its own baggage over the decades, and the latest disaster has added to this. The steps they take in the coming days and months will be critical—not just what they do, but how clearly they communicate those actions to the public.”

She pointed out that safety, though often assumed in aviation, must now be actively demonstrated and branded. “Just as IndiGo built its brand around on-time performance, Air India must now develop cues around safety, precision, and checks. Their communication so far has been empathetic and professional—that tone must continue.”

“This Is Not the Time to Berate the Brand”

Harish Bijoor, founder of Harish Bijoor Consults Inc urged a measure of compassion amid the criticism. “This is a moment of grief. Air India is in the middle of a terrible loss of lives. Accidents like these can happen to any airline, and this is not the time to berate or nitpick,” he said.

In moments of crisis, he argued, brands need support—not just scrutiny. “We must stand with Air India and the families affected. What matters most right now is compassion.”

As Tata grapples with this crisis, the future of Air India hangs in the balance. Experts agree that the brand can recover, but only through consistent action, greater transparency, and visible improvements that align with the airline’s promises. The crash may not define Air India’s future, but how the airline and its parent company respond in the days and months ahead certainly will.

First Published on Jun 16, 2025 7:33 AM

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