Tag: TewoldeGebremariam

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Air India CEO weighs merger of Air India Express

Air India is considering a possible merger of its budget carrier, Air India Express, with the parent airline as incoming CEO Tewolde Gebremariam looks for ways to reduce costs and simplify operations.

The proposal is still being discussed and no final decision has been taken. If approved, Air India Express could continue as a separate brand while being brought under a common operating structure with Air India.

The idea has emerged as Gebremariam prepares to take charge of the Tata Group-owned airline. People familiar with the matter said the incoming CEO has questioned whether Air India and Air India Express need to maintain separate operating structures and licences.

Combining parts of the two airlines could help remove duplication across management, engineering, administration and other support functions. A common structure could also allow the group to share resources more efficiently and reduce some operating expenses.

Air India Express would not necessarily disappear as a brand. The low-cost airline could continue serving price-sensitive travellers and short- and medium-haul routes, while Air India focuses on its full-service operations and longer international network.

The proposal would represent another step in the Tata Group’s effort to streamline its aviation business. When the group took control of Air India in 2022, it inherited several airlines and brands. Tata has since worked to bring them under a simpler structure.

Air India merged with Vistara in November 2024, creating a larger full-service airline. AirAsia India was also integrated into Air India Express, which became the group’s main low-cost carrier. The latest proposal could take consolidation a step further by bringing the two airlines under one operating framework.

Gebremariam is expected to focus heavily on costs and operational efficiency when he takes over at Air India. The airline has faced financial pressure despite the Tata Group’s investments in new aircraft, technology, airport facilities and passenger services.

Reports have put Air India’s loss for the financial year ended March at around ₹22,000 crore. The airline is also dealing with higher fuel and operating costs, international route disruptions and the impact of geopolitical tensions on its network.

The incoming CEO has already started examining areas where Air India can improve. Discussions have included aircraft utilisation, cargo operations and maintenance, with a focus on reducing delays and improving the use of the airline’s fleet.

Gebremariam brings extensive aviation experience to the role. He previously led Ethiopian Airlines and was associated with its expansion into a major international carrier. His appointment comes at a crucial stage in Air India’s transformation under the Tata Group.

The airline has been investing heavily in its fleet as part of a wider turnaround plan. Air India and Air India Express have placed large aircraft orders and are expanding their domestic and international networks. The group is also working to improve passenger experience and bring its fleet and services closer to global standards.

The possible merger could help the group reduce overlapping functions while giving management greater control over its combined fleet and workforce. However, bringing two separately structured airlines together would also involve regulatory, operational and organisational challenges.

Air India Express has grown significantly since becoming the group’s dedicated low-cost carrier. It operates a large domestic network and several international routes, particularly to destinations in the Gulf and Southeast Asia.

Keeping the Air India Express identity could allow the group to serve different passenger segments even under a common corporate or operating structure. Air India would continue to target full-service travellers, while Air India Express could retain its low-cost positioning.

The proposal is therefore still at the discussion stage and could change before any formal announcement. Any restructuring would require the necessary regulatory and internal approvals.

The possible Air India Express merger highlights the new management’s focus on simplifying the Tata Group’s airline operations. As Gebremariam prepares to begin his tenure, cutting costs, improving efficiency and strengthening operational performance are emerging as key priorities.

 

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Tewolde takes charge as Air India CEO

Tewolde Gebremariam has taken charge as the new chief executive officer and managing director of Air India, stepping into the top job at a critical point in the Tata Group-owned airline’s transformation.

The former Ethiopian Airlines chief succeeds Campbell Wilson, who led Air India through its return to the Tata Group, the merger with Vistara, fleet expansion and a major brand overhaul. Gebremariam now inherits an airline with ambitious growth plans but also mounting financial losses, operational challenges and heightened safety scrutiny.

His immediate focus is expected to be on making Air India’s everyday operations more reliable while strengthening safety and restoring passenger confidence. The new CEO has sought employee support as he begins the task of rebuilding the airline, with operational disruptions and service consistency likely to remain key priorities.

Safety is expected to be at the heart of his agenda. The June 2025 Air India Boeing 787 crash in Ahmedabad, which killed 260 people, brought intense scrutiny of the airline’s safety systems and operating procedures. Regulatory concerns and compliance issues have added to the pressure on the management to strengthen oversight and accountability.

Gebremariam brings nearly four decades of aviation experience to Air India. He joined Ethiopian Airlines in 1985 and eventually became its group CEO, a position he held for more than a decade. Under his leadership, the airline expanded its fleet, international network, passenger traffic and infrastructure, establishing itself as one of Africa’s leading carriers.

That experience will be closely watched as he takes on Air India’s much larger and more complex turnaround. The airline has placed orders for more than 500 aircraft and is seeking to build a stronger global network. Managing this expansion without worsening financial pressure will be one of his biggest challenges.

Air India’s financial performance remains a major concern. The Air India Group reported losses of more than $2 billion in the financial year ended March 2026. The airline has remained loss-making since the Tata Group took control in 2022, increasing pressure to improve revenues while keeping costs under control.

Several external factors have made the situation more difficult. Higher fuel costs, geopolitical tensions and restrictions on international airspace have affected flight operations and forced airlines to take longer routes. Air India has also reviewed parts of its international network and adjusted services in response to changing market conditions.

The airline is simultaneously undertaking a major fleet modernisation programme. Air India has begun introducing new aircraft while refurbishing older planes, but supply-chain constraints involving aircraft components, seats and other equipment have slowed some upgrades.

The success of the turnaround will be judged by more immediate issues. Punctual flights, smoother baggage handling, better communication during disruptions, cleaner aircraft and consistent service will be crucial in rebuilding Air India’s reputation.

The airline is also facing stronger competition as India’s aviation market expands. IndiGo remains a dominant domestic player, while international airlines continue to compete for India’s growing long-haul travel market. Air India’s ability to combine its extensive international ambitions with dependable operations will be crucial to its future position.

For Gebremariam, the challenge is to balance growth with stability. The airline cannot afford to lose sight of operational discipline while pursuing its ambitious fleet and network expansion.

 

His experience at Ethiopian Airlines gives him a strong background in building and managing a major carrier. But Air India presents a different set of challenges, from its financial losses and ageing aircraft to safety concerns and the expectations surrounding the Tata Group’s aviation ambitions.

 

The new CEO will also need to strengthen coordination across Air India’s wider group operations following the Vistara integration. Aligning employees, systems and service standards across the expanded airline will be important as the carrier seeks to create a more consistent experience for passengers.

 

The coming months will therefore be an important test of Gebremariam’s leadership. Investors, employees and passengers will be looking for visible improvements in reliability, safety and service, while the management will have to keep the airline’s long-term growth plans on track.

 

For Air India, the priority now is turning years of transformation plans into measurable results. Under its new CEO, the airline faces the difficult task of becoming not just a larger carrier, but a safer, more reliable and financially sustainable one.

 

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Tewolde Gebremariam named Air India CEO, MD

Air India has chosen an aviation veteran with a reputation for turning around complex airline operations to lead its next phase of growth. Tewolde Gebremariam, the former chief executive of Ethiopian Airlines Group, has been appointed Chief Executive Officer and Managing Director of Air India, succeeding Campbell Wilson.

The appointment was announced by the Air India board on August 5, following a months-long search for a new leader. The airline said it evaluated both internal and international candidates before selecting Gebremariam, citing his experience in airline turnarounds, operational excellence, safety, international expansion and profitable growth.

The change comes at an important moment for Air India. The Tata Group-owned airline has completed several major steps in its transformation since returning to Tata ownership in 2022, including the merger with Vistara, a major fleet modernisation programme and changes to its corporate structure. It is now attempting to turn those investments into a more reliable and financially stronger global carrier.

Gebremariam brings a long track record in building an international airline. He spent more than three decades with Ethiopian Airlines, joining the carrier in 1985 and rising through several commercial and operational roles. He became Group CEO in 2011 and remained in the position until 2022. During his tenure, Ethiopian Airlines expanded dramatically, with revenue increasing more than fourfold and its fleet nearly tripling, according to Air India.

Under his leadership, Ethiopian Airlines developed into Africa’s largest airline group and built a strong international network centred on Addis Ababa. Gebremariam was closely involved in expanding long-haul routes, strengthening hub operations and developing aviation infrastructure, including maintenance, repair and overhaul facilities and training capabilities.

That experience is particularly relevant to Air India, which is trying to build a stronger global hub-and-spoke network while upgrading its fleet and passenger experience. Air India has said its new CEO will be expected to focus on operational reliability, engineering standards, safety, employee development and customer service alongside expansion.

For passengers, some of these changes could eventually be visible in everyday aspects of flying. Air India has said it wants to improve on-time performance, modernise aircraft cabins, raise hospitality standards and offer more seamless international connectivity. The airline is also looking to strengthen its position as a major global aviation hub connecting India with key international markets.

The appointment also comes against a difficult financial backdrop. Air India Group recorded a loss of more than $2 billion in fiscal 2025-26, according to Singapore Airlines, which owns a 25.1% stake in the group. The airline is therefore facing the challenge of balancing ambitious fleet and network plans with the need to control costs and improve profitability.

The timing is also significant because Air India has faced heightened scrutiny following last year’s fatal crash, which killed 260 people. The accident increased pressure on the airline to strengthen safety, operational discipline and regulatory compliance. Gebremariam’s experience in managing crises, including the COVID-19 pandemic and the aftermath of the 2019 Boeing 737 MAX crash involving Ethiopian Airlines, is expected to be an important part of his leadership profile.

Tata Sons Chairman N Chandrasekaran said Air India had completed its initial stabilisation, integration and fleet commitments under Wilson and was now entering a “critical execution and expansion era”. He said Gebremariam’s experience in building an efficient and profitable airline would be valuable as Air India works towards becoming a leading global carrier.

Gebremariam, for his part, described the appointment as an honour and said Air India’s legacy and India’s economic potential made the opportunity particularly significant. He said he looked forward to working with the board, employees, government and industry partners to improve operational reliability, strengthen Indian hospitality and deliver sustainable long-term growth.

The appointment marks the end of Campbell Wilson’s tenure as the central figure in Tata’s initial Air India revival. Wilson, a former Singapore Airlines executive, took over in 2022 after the Tata Group acquired Air India from the government. During his tenure, he oversaw the airline’s brand transformation, fleet modernisation and the complex integration of Air India and Vistara. He announced his resignation in April 2026 and is expected to remain through the transition period, with his tenure running until September 30.

The next phase will arguably be more demanding than the first. Air India now has to convert a large-scale transformation programme into consistent performance on the ground and in the air. That means better punctuality, dependable operations, stronger safety systems, improved customer experience and, ultimately, sustainable profits.

Gebremariam’s record suggests that he understands the scale of such a task. But Air India’s challenges are different from those faced by Ethiopian Airlines, and its transformation involves a much larger and more competitive aviation market.

His immediate challenge will be to bring together people, aircraft, routes, technology and operational systems into one dependable airline. For Air India, the appointment is therefore not simply a change at the top. It is a bet that experience gained from building one of Africa’s strongest carriers can help the Maharaja regain a stronger place in global aviation.