Air India Crash Poses Major Test for Airline’s Reinvention and India’s Aviation Ambitions

This is a terrible day for the Indian aviation sector, one of the fastest-growing in the world. The business impact will unfold in coming days and weeks.

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The crash of Air India Flight 171 is a human tragedy first — and it’s going to be a while before we have clear answers about what exactly happened.

The business impact will unfold over the coming days and weeks. We know there are implications for Boeing, given its struggles in recent years. Air India is in the middle of a multi-year transformation, and its response to the crisis will be closely watched. And there will certainly be an impact on India’s aviation sector more broadly - one of the fastest-growing in the world.

Here’s what we’ll be tracking.

Boeing, which has already faced intense scrutiny over the past several years, finds itself once again in the spotlight. We know that safety is an important factor for airline passengers. On the whole Boeing aircraft are safe to fly but this string of bad news and tragic crashes have hurt the brand.

The specific aircraft involved was a 787 Dreamliner and Air India is the only Indian airline operating it, with 34 in service today and 20 more on firm order.

The Dreamliner is key for Air India's long haul strategy as it constitutes nearly 50% of the total long haul capacity for the airline.

That brings us to Air India’s strategy. This national icon was in the midst of its most ambitious transformation in decades — and this is a potential setback depending on how it handles the crisis.

The team at Air India, led by Campbell Wilson, has been navigating a complex merger and brand renewal since 2021. But this tragedy will likely become one of the most defining moments of his leadership.

And finally, this is a terrible day for Indian aviation more broadly. This moment feels especially heavy, as it comes just days after I returned from the IATA Annual General Meeting in New Delhi — the first time in 42 years that India hosted the event.

There was so much optimism in the air — airlines, airport, travel tech, government leaders, everyone speaking about growth, safety, and the future of Indian aviation.

India’s aviation infrastructure has been a focus of investment with the government committing to invest $11 billion towards building and expanding airports. India aims to reach 200 airports by the end of this year with another 200 over the next two decades.

Live Updates: Ongoing coverage of the crash of Air India flight 171 from Skift’s editorial team in India, Europe, and the United States.