Air India Terminates Over 1,000 Employees For Ethical Breaches: CEO

Air India has terminated more than 1,000 employees over the past three years for ethical violations, including misuse of internal benefits and other forms of misconduct, according to the airline’s chief executive officer Campbell Wilson. The disclosure comes as the Tata Group-owned carrier continues to streamline operations amid financial pressure and ongoing cost-control measures.

Wilson reportedly made the remarks during a staff town hall meeting held on Friday, where he stressed the importance of integrity and compliance across all levels of the organisation. He said hundreds of employees are dismissed each year for failing to adhere to internal rules and emphasised that ethical conduct must be maintained even in situations where oversight is limited.

According to the airline, the violations include serious infractions such as smuggling items off aircraft, permitting excess baggage without proper charges, and improper use of the Employee Leisure Travel (ELT) system. The ELT scheme, which allows staff travel benefits, was reportedly misused in several instances, prompting corrective action and internal investigations.

Also Read: Air India to Discuss CEO Succession Plan at Key Board Meeting on May 7

The airline has also undertaken broader cost-cutting measures in recent months as it navigates financial headwinds. These steps include freezing annual salary increments for staff, curbing discretionary spending and reducing non-essential operational expenses. Management has warned employees to prepare for what it described as a “very difficult year” if external conditions, particularly geopolitical tensions in the Middle East, do not improve.

The scale of internal scrutiny has increased significantly as part of the airline’s restructuring efforts under the Tata Group. Air India currently employs around 24,000 people, and officials say workforce discipline and efficiency are key priorities as the company works toward long-term financial stability.

Earlier reports indicated that discrepancies in the use of the leisure travel policy were identified among more than 4,000 employees, leading to penalties and disciplinary action. The airline has maintained that such measures are necessary to uphold operational standards and rebuild accountability across its workforce.

Wilson also reportedly warned that the Air India Group, which includes Air India Express, could face losses exceeding ₹22,000 crore in the financial year ending March 2026 if current challenges persist. The airline continues to focus on restructuring efforts as it attempts to improve profitability and restore financial health in a highly competitive aviation market.

Also Read: Air India To Trial International Connectivity From Varanasi June 1