Air India’s new chief Tewolde Gebremariam puts safety, reliability and profitability at the centre of turnaround

MUMBAI. Air India’s incoming chief executive and managing director, Tewolde Gebremariam, has laid out an agenda centred on safety, operational reliability, sustainable profitability and greater organisational efficiency, signalling a shift towards execution and financial discipline in the airline’s next phase of transformation.

Addressing employees at his first company-wide town hall in Mumbai on September 28, Gebremariam acknowledged the progress Air India had made over the preceding four years but said considerable work remained before the airline could establish itself among the world’s leading carriers.

The former Ethiopian Airlines chief called on employees to take collective responsibility for safety, improve punctuality and baggage handling, communicate transparently with passengers during disruptions, generate additional revenue and identify opportunities to reduce costs. He also stressed the importance of operating as “one Air India Group”, with greater coordination across businesses and more efficient use of the airline’s fleet, network and resources.

The town hall was an important early indication of the management priorities Gebremariam intends to pursue as he succeeds Campbell Wilson. It came at a time when Air India is attempting to translate extensive investments in fleet modernisation, corporate integration and network expansion into measurable

improvements in service quality and financial performance.

The central message was that expansion alone would not be enough. Air India must build a stronger operational foundation, restore passenger confidence and ensure that growth generates sustainable returns.

Safety: the non-negotiable priority

Safety was the foremost concern in Gebremariam’s address. He told employees that every activity undertaken by the airline must meet safety requirements and that responsibility for maintaining high standards rests with everyone, not just the safety department or senior management.

“Everything we do must be safe,” he said.

He called for a workplace culture in which employees feel empowered to raise concerns, report irregularities and flag potential hazards without hesitation.

“If you see something, say something,” he told employees, adding that a stronger reporting culture would strengthen the airline’s overall safety culture.

The emphasis on reporting is significant in aviation, where early identification of technical faults, procedural lapses and other hazards can help prevent incidents. A robust safety culture requires employees to communicate concerns promptly and management to investigate them thoroughly and take corrective action.

For Air India, this means reinforcing standard operating procedures, strengthening coordination among flight operations, engineering, maintenance and ground-handling teams, and ensuring that safety concerns are addressed without delay.

It also requires management to distinguish between honest reporting of mistakes or hazards and deliberate violations of established procedures. Employees must have confidence that raising a legitimate concern will lead to appropriate action rather than being ignored.

The airline’s safety performance is under particular scrutiny following the fatal crash of an Air India Boeing 787 shortly after take-off from Ahmedabad in June 2025, as well as subsequent operational incidents. The pressure to demonstrate improvements in safety oversight, technical capability and regulatory compliance has consequently intensified.

Gebremariam’s message therefore establishes safety as the foundation on which the airline’s commercial ambitions must rest. Fleet expansion, new routes and improved financial results cannot substitute for consistently sound operational practices.

The real test will be whether the emphasis on speaking up is translated into effective reporting mechanisms, stronger technical oversight, adequate training and measurable improvements in safety management.

Reliability and customer confidence: getting the basics right

Gebremariam identified operational reliability as the second major priority, emphasising that customers should be able to depend on Air India for punctual departures and arrivals, proper baggage handling and transparent communication when flights are disrupted.

“Our customers should remember Air India for its reliability,” he said, according to reports of the town hall. He stressed that when disruptions occur, the airline must communicate openly and recover quickly.

The message reflects a fundamental challenge for Air India: rebuilding passenger confidence requires consistent performance across the entire travel experience, not merely a modern fleet or an expanded international network.

Delays caused by weather, airspace restrictions or technical issues cannot always be avoided. However, airlines can improve their ability to manage such disruptions through effective planning, adequate operational reserves, timely communication and coordinated decision-making.

For Air India, reliability will depend on several interconnected functions:

• Aircraft availability: Ensuring that maintenance schedules, engineering support and spare-parts availability minimise avoidable aircraft-on-ground situations.
• Crew and flight planning: Improving coordination so that disruptions do not cascade across subsequent services.
• Airport operations: Strengthening turnaround procedures, ground handling and baggage delivery.
• Passenger communication: Providing timely, accurate information and practical assistance when schedules change.
• Disruption recovery: Making decisions quickly to restore operations while treating affected passengers fairly.

These improvements are particularly important as the airline expands its international network. Longer routes, complex connecting itineraries and aircraft operating across multiple time zones can magnify the consequences of a disruption.

Gebremariam’s emphasis on reliability suggests that Air India must make operational performance a shared responsibility across departments. Punctuality and baggage delivery are visible to passengers, but achieving them depends on the effectiveness of systems and processes operating behind the scenes.

Profitability: a sharper focus on revenue and costs

A third major priority was to improve Air India’s financial performance by increasing revenue and exercising tighter control over expenditure.

Gebremariam identified opportunities across the international network, commercial activities and cargo business. He also highlighted the importance of improving network efficiency, optimising aircraft deployment and ensuring that the airline’s operations are appropriately balanced.

The emphasis comes against a difficult financial backdrop. According to media reports, the Air India Group recorded a consolidated net loss of ₹22,238 crore in FY2025-26, compared with ₹10,859 crore in FY2024-25. The figures underline the scale of the challenge facing the new management.

Air India has invested heavily in rebuilding its business, but its long-term viability will depend on its ability to turn increased capacity and improved services into stronger financial returns.

Generating more revenue from existing operations

One important opportunity lies in improving the commercial performance of the airline’s existing network.

Revenue depends not simply on how many passengers fly, but also on fares, passenger mix, seat occupancy, route economics and the effectiveness with which aircraft capacity is deployed.

A key industry measure is revenue per available seat kilometre (RASK), which indicates how much passenger revenue an airline earns for the capacity it offers. Improving this metric requires a combination of sound pricing, effective revenue management, an appropriate route mix and the ability to attract passengers willing to pay fares that support profitable operations.

Air India can also seek to improve returns from its international connections, where coordinated schedules and effective hub operations can help attract passengers travelling between different regions.

Cargo provides another potential source of revenue. Better utilisation of cargo capacity, stronger commercial relationships and improved integration between passenger and cargo operations could help diversify earnings.

However, these opportunities will need to be assessed against market demand, competition and operating costs. Additional revenue is valuable only when it contributes positively to the airline’s overall financial performance.

Cost control must involve every employee

Gebremariam also argued that cost management should not be regarded as the exclusive responsibility of the finance department or senior executives.

“Cost management is not just the responsibility of leadership or the finance function. Every employee can contribute to savings, and those savings add up across an organisation of our scale,” he said.

Air India was also considering programmes to reward employees whose suggestions deliver measurable cost savings and operational efficiencies.

This approach could encourage employees to identify waste, streamline administrative processes, improve resource utilisation and suggest practical ways of reducing avoidable expenditure.

In an airline, even relatively small improvements can have significant cumulative effects because of the scale of operations. Better aircraft utilisation, fewer avoidable delays and more efficient procurement can improve financial performance across a large network.

But cost discipline must be applied carefully. Cutting expenditure on maintenance, training, safety equipment or other essential functions could undermine the very operational standards the airline is trying to strengthen.

The objective, therefore, is to reduce inefficiencies while preserving the investment required for safe operations, reliable services and sustainable growth.

Disciplined expansion: Growth must be profitable

Gebremariam acknowledged the substantial opportunities available to Air India because of India’s economic growth, demographic profile, geographical position and large overseas diaspora.

These factors provide a strong foundation for expanding international connectivity and strengthening India’s position in global aviation. However, he cautioned that growth must be sustainable and supported by the airline’s operational capabilities.

“Growth is the oxygen of business. But growth must also be profitable and sustainable,” he said.

The distinction is important for an airline that has committed substantial capital to aircraft acquisition, cabin upgrades, technology and network development.

Expansion can increase revenue and market presence, but it also brings additional costs. New routes require suitable aircraft, trained crew, engineering support, airport arrangements and sufficient demand. If these elements are not aligned, additional capacity can place pressure on margins rather than improve profitability.

Gebremariam’s approach appears to be that Air India should match its expansion plans to the readiness of its people, fleet and network.

That means ensuring that aircraft are available when required, operational teams have the necessary resources and routes can generate adequate returns. It also means examining the performance of existing services rather than assuming that adding capacity will automatically produce better results.

The objective is not to abandon Air India’s global ambitions, but to ensure that the airline builds scale without compromising operational reliability or financial sustainability.

Building ‘One Air India Group’

Gebremariam also stressed the importance of operating as “one Air India Group”, with streamlined processes and greater synergies across its businesses.

The Tata Group’s consolidation of its aviation operations has already reshaped the structure of Indian aviation. Vistara was integrated into Air India, while Air India Express and AIX Connect were combined under the Air India Express brand. The resulting group has a broader operating base and a larger platform for international and domestic growth.

But corporate consolidation is only the first step. The benefits must be realised through effective integration of systems, teams, commercial processes and operational planning.

Greater coordination could help the group improve aircraft utilisation, reduce duplication, strengthen procurement and align network planning. It could also improve connections between services and create opportunities to generate more revenue from passengers travelling across multiple routes.

At the same time, integration requires a common culture and clear accountability. Employees from different legacy organisations must be able to work effectively together, while management must ensure that decision-making remains responsive and operational responsibilities are clearly defined.

Gebremariam’s emphasis on a unified group suggests that he sees organisational efficiency as an important part of Air India’s turnaround.

His remarks did not announce another merger. Rather, the stated objective was to streamline operations and capture synergies while maintaining a strong focus on customers.

Geopolitical tensions and fuel prices add to the challenge

The new chief executive also acknowledged the external pressures facing Air India, including geopolitical developments, airspace restrictions affecting Indian carriers, elevated fuel prices and uncertainty in international markets.

These factors can affect both costs and operational planning.

Airspace restrictions may force airlines to take longer routes, increasing fuel consumption and flight times. Longer journeys can also affect crew scheduling, aircraft utilisation and the timing of connecting services.

Fuel-price volatility is another major concern because fuel represents a substantial component of airline operating expenditure. Even when an airline improves its internal efficiency, sharp increases in fuel costs can erode margins.

Uncertainty in international markets can also complicate decisions about route expansion, aircraft deployment and pricing.

These challenges make disciplined planning particularly important. Air India must balance the need to grow its international network with the flexibility required to respond to changing geopolitical and commercial conditions.

Its ability to manage external disruptions while maintaining reliable service will be a significant test of the new management team.

Why Gebremariam’s appointment matters

Gebremariam brings extensive experience in airline management, international network development and operational transformation. During his tenure at Ethiopian Airlines, he oversaw a major expansion that helped establish the carrier as one of Africa’s leading airlines.

Tata group

The Tata Group announced his appointment on August 5, 2026, citing his experience in managing large-scale airline transformations, improving operational performance and building international aviation businesses. He was selected to succeed Campbell Wilson as Air India moved into what the group described as a new phase of growth and execution.

His experience at Ethiopian Airlines is relevant because that carrier developed an extensive international network and strengthened Addis Ababa’s position as a connecting hub for passengers travelling between Africa and other parts of the world.

Air India has a different set of opportunities and constraints. It operates in a highly competitive domestic market, serves a large international passenger base and must integrate businesses while managing significant capital requirements and heightened expectations on safety and service.

Gebremariam’s experience may help Air India strengthen operational processes, technical capabilities and network efficiency. But the results will depend on his ability to adapt those lessons to the airline’s specific circumstances and deliver improvements across a much larger and more complex organisation.

From rebuilding the airline to delivering results

The town hall acknowledged the contribution of Air India’s employees to the transformation undertaken since the airline returned to Tata Group ownership in January 2022.

Gebremariam thanked the workforce for its role in the changes of the preceding four years, including the merger and integration of Air India and Vistara. He also said that considerable opportunities remained to improve the airline and strengthen its global position.

His message points to a transition between two phases of the turnaround.

The first phase focused on rebuilding the foundations: consolidating businesses, ordering new aircraft, modernising the fleet, upgrading the passenger experience and creating a platform for expansion.

The next phase requires those investments to deliver consistent results. Aircraft must be deployed efficiently, operational disruptions reduced, passengers treated well and revenues improved relative to costs.

These objectives are interconnected. Better maintenance planning can improve aircraft availability. More reliable flights can strengthen passenger confidence. Improved network coordination can increase the value of connecting traffic. And greater operational efficiency can help reduce avoidable costs.

For employees, this means a stronger emphasis on accountability and collaboration. For management, it means setting measurable priorities and ensuring that departments work towards common objectives.

For passengers, the ultimate measure will be whether Air India becomes safer, more dependable and more responsive to their needs.

The road ahead

Gebremariam’s first town hall was an early statement of intent rather than a detailed public announcement of new financial targets or a comprehensive restructuring plan.

Its significance lies in the priorities he chose to emphasise: safety first, operational reliability, sustainable profitability, disciplined growth and a more integrated airline group.

Air India continues to face substantial challenges, including financial losses, competition, operational complexity and the need to rebuild passenger confidence. Its investments and expanded network provide opportunities, but they do not guarantee success.

The airline will need to demonstrate progress through tangible improvements in safety practices, punctuality, customer service, aircraft availability, revenue performance and cost efficiency.

The wider significance of the town hall is that Air India’s next phase will be judged increasingly by execution rather than ambition alone.

The test for Gebremariam will be whether he can turn Air India’s expanded scale and substantial investments into a consistently reliable, customer-focused and financially sustainable global airline.