NEW DELHI— Tata Group-owned Air India (AI) has terminated more than 1,000 employees over the past three years for ethical violations, including smuggling goods off aircraft and allowing excess baggage without charging passengers. CEO and MD Campbell Wilson disclosed the figures during an internal town hall meeting held on May 8, 2026.
Wilson warned staff that hundreds of terminations occur every year due to non-compliance, and stressed that employees must act with integrity even when no one is watching. The remarks came as the Tata Group-owned carrier tightens financial controls amid mounting losses.
Air India Fires Over 1,000 Staff
Wilson, addressing the airline’s approximately 24,000 employees, stated that ethical breaches have included staff smuggling items off planes and permitting passengers to carry excess baggage without paying the applicable charges.
He described these violations as unacceptable and made clear that such conduct carries serious consequences, including dismissal.
The CEO also highlighted widespread misuse of the Employee Leisure Travel (ELT) system. In March 2026, sources informed PTI that Air India had identified large-scale discrepancies in the ELT policy involving more than 4,000 employees.
The airline has since initiated corrective action, including financial penalties against those found responsible.
Cost Cuts and Financial Pressure Mount
Air India has implemented a range of cost-saving measures in recent months, including deferring annual salary increments and directing staff to reduce discretionary and non-critical spending.
Wilson cautioned employees that 2026 would be a “very, very difficult year” if conditions in the Middle East do not stabilise.
The Air India Group, which comprises Air India (AI) and Air India Express (IX), is projected to have recorded a combined loss exceeding ₹22,000 crore for the financial year ended March 2026. The airline’s leadership has framed these cost-reduction efforts as necessary steps to navigate what it has called “tough times.”
Ethics Enforcement as a Cultural Priority
Wilson’s town hall remarks signal that Air India’s leadership views ethical discipline as central to its broader turnaround strategy under Tata Group ownership.
By publicly disclosing termination numbers, the airline appears to be reinforcing accountability across its workforce rather than treating misconduct as an internal matter handled quietly.
The combination of financial strain and a firm compliance posture suggests Air India is attempting to restructure both its cost base and its organisational culture simultaneously, a challenging dual objective for any large employer.
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