Air India Chief Executive Officer (CEO) Campbell Wilson has resigned, a source with direct knowledge of the matter said on Tuesday.

The development comes as the airline grapples with persistent losses and heightened regulatory scrutiny following a crash last year that killed 260 people.

The news of his resignation comes just days after its bigger rival IndiGo tapped aviation industry veteran Willie Walsh as its next CEO, as the country’s two largest carriers come under pressure to tackle a mounting industry crisis stemming from the Middle East conflict compounded by domestic operational challenges.

Reuters reported in January that Air India’s board was scouting for a new CEO to replace Wilson, a former Singapore Airlines veteran brought in to steer the Indian carrier’s turnaround in 2022 after years of decline under government ownership.

The airline, which is contending with aircraft delivery delays, has also been reprimanded by regulators for safety lapses, including flying an aircraft eight times without an airworthiness certificate and running planes without checking emergency equipment.

New Zealand-born Wilson’s term was due to end in 2027. He is currently serving a six-month notice period and plans to stay with the company until a successor is found, the source said, declining to be identified as they were not authorised to speak with media.

Air India did not immediately respond to Reuters’ request for comment outside regular business hours. Wilson’s resignation was reported by Indian publication Mint late on Monday.

Since taking over the top job in 2022, Wilson has steered the airline through the early and difficult stages of its turnaround, including overhauling Air India’s engineering department and refurbishing planes amid supply chain disruptions.

“Over the last four years, Campbell did a good job in very tough circumstances,” said Brendan Sobie, a Singapore-based independent aviation analyst.

“Finding the right candidate to complete (Air India’s) transformation will not be easy and Tata will particularly feel the pressure to get this right following IndiGo’s recent appointment of Willie Walsh,” he said.

In December, Air India admitted there was a “need for urgent improvements in process discipline, communication, and compliance culture”, Reuters reported.

Air India has a fleet of 191 planes and has placed orders for more than 500 aircraft.

It has lost money since being bought by Tata Group in 2022, with the financial pressure worsening since Pakistan banned Indian carriers from its airspace last year. Air India and its low-cost carrier Air India Express reported a combined loss of 98.08 billion Indian rupees ($1.05bn) in the 2024-2025 financial year.

A prolonged Iran war will add further pressure on Air India’s lucrative western routes, already scaled back due to Pakistan’s restrictions.

Air India is chaired by N. Chandrasekaran, who is also the chair of Tata Group. Singapore Airlines holds a 25 per cent stake in Air India.