It's certainly overexposed, although I'm struggling to see the oversharp and grain looks marginal on my screen but you know what this site is like for grain! The use of flash was probably a little strong, I rarely use flash for wide angle cabin shots in favour of natural lighting. Cabin shots are difficult to take due to the low light but strong light sources from the cabin lights. I normally use -1/3 or -2/3 exposure compensation when taking cabin shots, subject to the ambient light or the camera will overexpose the cabin lights too much. I don't think this is too overexposed to bin it, a careful edit with reduced exposure, slightly less sharpening and a but of noise reduction might do the trick.
Great shot though, I take it that's the economy section of Air India's new 787-8?
[Edited 2012-10-06 10:25:40]
Equipment: 2x Canon EOS 50D; Sigma 10-20 EX DC HSM, 50-500 EX APO DG, Canon 24-105 f/4 L, Speedlite 430EX