Tag: TewoldeGebremariam

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Air India CEO targets bigger global footprint

Air India is preparing for a bigger international presence, with plans to increase its orders for wide-body aircraft as the Tata Group-owned airline looks to regain market share from foreign carriers and strengthen its position in global aviation. Chief Executive Officer and Managing Director Tewolde Gebremariam outlined the airline’s long-term ambitions at the Aviation India and South Asia 2026 conference in New Delhi on November 3. He indicated that Air India was in discussions with aircraft manufacturers Airbus and Boeing to explore additional wide-body aircraft orders.

The proposed expansion comes despite the airline already having a substantial aircraft order book. Air India has placed orders for around 600 aircraft, including approximately 80 wide-body jets. However, its management believes the existing commitments may not be sufficient to support the airline’s international growth ambitions.

The airline is also considering changes to its flight network, developing additional international hubs and cutting operating costs as it works towards returning to profitability.

“We want to increase our order of wide-bodies. Our network and our strategy demand more,” Gebremariam said, underlining the importance of expanding long-haul capacity.

Wide-body aircraft, which typically have two aisles and greater passenger capacity, are particularly important for long-distance international routes. They allow airlines to connect major cities across continents while carrying more passengers and cargo. For Air India, a larger fleet could help introduce additional international services, improve connectivity and compete more effectively with established global airlines.

The airline currently operates 61 wide-body aircraft, while around 10 of the 80 wide-body jets in its existing order book have reportedly been delivered. Its fleet includes Airbus A350s and Boeing 787 and 777 aircraft. The airline is also evaluating the economics of operating older aircraft, which can involve higher maintenance and fuel expenses.

The expansion strategy is closely linked to Air India’s ambition to recover international passenger traffic that currently flows through foreign airlines, particularly major aviation hubs in West Asia and Southeast Asia.

A significant number of Indian travellers flying to Europe, North America and other international destinations use connecting services offered by overseas carriers. Airlines based in Dubai, Doha, Singapore and Kuala Lumpur have benefited from their established networks and convenient connections.

Gebremariam wants Air India to capture a larger share of this traffic by offering more direct international flights and improving connections between overseas destinations through India.

The airline is also looking to increase international-to-international connecting passengers. This means attracting travellers who fly into an Indian airport from one country and continue to another international destination without entering India as their final destination.

Building this segment will require a stronger long-haul fleet, better airport infrastructure, convenient flight schedules and an extensive international network.

“We have been punching below our weight in the market. That is going to change,” the CEO said, signalling a more aggressive approach towards international expansion.

The expansion will also involve a rethink of Air India’s hub strategy. Geopolitical tensions and restrictions on the use of Pakistani airspace have affected several long-haul routes, particularly those operating from Delhi. Disruptions in parts of the Gulf region have added further pressure on international flight operations.

To address these challenges, the airline is considering shifting a larger share of its Europe and North America services to Mumbai. Routes from Mumbai are relatively less affected by the airspace restrictions to India’s west, making the city a more practical departure point for certain long-haul destinations.

Delhi, meanwhile, could see greater connectivity with regions such as Southeast Asia, East Asia and Australia, where flights are less affected by the current disruptions. Air India is also exploring Bengaluru as a potential third operational hub.

The proposed changes are aimed at making its international network more efficient while reducing the impact of geopolitical developments on flight schedules, operating expenses and passenger connectivity.

However, expanding the fleet and network is only one part of the airline’s turnaround plan. Bringing down costs and improving operational efficiency remain equally important priorities.

Air India reported a consolidated loss of more than Rs 22,000 crore in the financial year 2025-26, more than double the loss recorded in the previous financial year. Higher jet fuel prices, airspace restrictions, operational challenges and the financial impact of the June 2025 Air India Flight AI 171 crash have added to the airline’s difficulties.

Gebremariam has made it clear that improving profitability cannot be postponed indefinitely. He said he was even more impatient than the shareholders to see Air India become profitable and expressed confidence that the airline could achieve the goal through higher revenues and better cost management.

Since taking charge, the CEO has established a cross-functional team to identify savings across the organisation. The airline is also looking at closer operational integration between Air India and its low-cost subsidiary, Air India Express.

Sharing corporate functions, improving operational coordination and using resources more efficiently are among the measures being considered. The objective is to reduce duplication, control expenses and create stronger business synergies across the airline group.

The strategy also involves positioning the two brands to serve different passenger segments. Air India will focus on full-service international and domestic operations, while Air India Express will continue to strengthen its presence in the low-cost aviation market.

For the Tata Group, the airline’s international ambitions represent a long-term investment rather than an immediate expansion exercise. Tata owns approximately 75% of Air India, while Singapore Airlines holds the remaining stake.

Air India’s transformation began after the airline returned to Tata Group ownership in January 2022. The group subsequently placed a major aircraft order with Airbus and Boeing, initially covering 470 aircraft, before expanding its commitments to around 600 planes.

The transformation programme has also included upgrading aircraft interiors, introducing a new brand identity, investing in technology and consolidating the group’s airline operations. Its four-airline structure was reorganised into two principal brands, Air India and Air India Express.

Gebremariam now faces the task of taking these initiatives into the next phase. His experience leading Ethiopian Airlines, which developed into Africa’s largest carrier and established Addis Ababa as a major international aviation hub, is expected to be relevant to Air India’s ambitions.

India is already the world’s third-largest aviation market, after the United States and China. Its growing passenger base and large overseas diaspora offer significant opportunities for domestic airlines to expand international operations.

Air India’s challenge will be to convert that demand into sustainable business growth while competing with established international carriers.

With additional wide-body aircraft under consideration, a possible third hub in Bengaluru and a renewed focus on operational efficiency, the airline is preparing for a larger role in global aviation. Whether these plans translate into stronger market share and consistent profitability will depend on how effectively it manages expansion alongside its financial and operational challenges.

 

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Air India sets up cost-saving team amid record losses

Air India has launched a fresh cost-cutting drive as its new chief executive, Tewolde Gebremariam, looks to bring the loss-making airline back on track. The airline has formed a dedicated team to identify savings across its operations, tightened spending approvals and plans to reward employees who suggest practical ways to reduce costs or increase revenue.

The measures come at a difficult time for the Tata Group-owned airline. Air India reported a consolidated loss of ₹22,238 crore in the financial year ended March 2026, more than double the ₹10,859 crore loss recorded a year earlier. Its total income also declined, falling to ₹71,870 crore from ₹78,636 crore in FY25.

Gebremariam, who took charge as chief executive officer and managing director on October 1, has asked employees to make cost awareness part of their everyday work. In a message to staff, he said every rupee saved could be reinvested in areas that matter to the airline, including operational performance and customer experience.

The initiative reflects a shift in focus from expansion alone to building a more efficient and financially sustainable airline. Air India has been investing heavily in aircraft, cabin upgrades, technology and customer service as it works to compete with established international carriers. The challenge now is to manage those investments while reducing losses.

A full-time, multidisciplinary team has been established to review expenditure across the organisation. The group will examine spending across departments and identify opportunities to improve efficiency, reduce waste and make better use of existing resources.

The team is expected to look at several areas, including procurement, supplier contracts, internal processes and the use of staff and equipment. Renegotiating contracts, improving resource utilisation and bringing certain outsourced activities in-house are among the options being considered.

Air India is also preparing to introduce PRABHAV – The Value Creator Award, an initiative designed to encourage employees to come forward with cost-saving and revenue-generating ideas.

The airline wants suggestions from staff who understand the practical challenges of daily operations. Employees may be able to identify unnecessary steps in a process, reduce waste, improve the use of equipment or find more efficient ways to purchase goods and services.

Ideas that are implemented will be rewarded, according to the company’s communication to employees. The programme will also encourage staff to identify new revenue opportunities and generate greater value from the airline’s existing products and services.

Gebremariam has stressed that cost reduction cannot be left to a single committee. The airline needs participation across departments, with employees taking responsibility for spending decisions and looking for more effective ways to complete their work.

The approach could help Air India find savings that are difficult to identify through central reviews alone. However, the impact will depend on whether the ideas lead to measurable improvements without affecting flight operations, safety or passenger service.

The airline has also tightened its approval process for Staff On Duty (SOD) arrangements. Under the revised system, effective October 1, approvals must pass through the head of department, the chief experience officer and the CEO.

The change is intended to bring greater scrutiny, transparency and accountability to spending decisions. It also gives senior management closer oversight of expenditure at a time when the airline is under pressure to improve its financial position.

The controls are part of a wider effort to make spending more disciplined across Air India’s operations. The company must balance the need to save money with the demands of running a large airline, where aircraft maintenance, training, staffing, airport operations and passenger support are essential costs.

Air India’s financial challenges are not limited to internal spending. High aviation turbine fuel prices, airspace restrictions and conflict-related disruption in West Asia have increased pressure on airlines.

Restrictions on the use of Pakistani airspace have forced Indian carriers to take longer routes on some international services. The conflict in the Middle East has also disrupted flight operations, leading to route changes, cancellations and reduced services on some routes.

Longer journeys can increase fuel consumption and crew-related costs, while disruptions can affect aircraft utilisation and schedules. These pressures make cost control more difficult, particularly for an airline operating an extensive international network.

Air India is also dealing with the impact of the fatal crash of flight AI171 in June 2025, which killed 260 people. The airline has faced increased scrutiny over safety and compliance, making operational reliability and restoring passenger confidence important priorities alongside financial recovery.

Reports have also indicated that Air India is seeking around $1.5 billion in fresh equity funding from its owners, Tata Sons and Singapore Airlines. The airline has been working to manage aircraft-related costs, with shortages of seats and other components delaying some cabin upgrades. It is also looking at ways to adjust aircraft delivery schedules to conserve resources.

Gebremariam brings extensive aviation experience to the role. He previously led Ethiopian Airlines for 11 years as group CEO and helped expand it into one of Africa’s largest and most profitable airline groups.

At Air India, he inherits an ambitious transformation programme that includes fleet renewal, improved cabins, technology investments and changes to the airline’s operations. The company returned to private ownership in 2022 after the Tata Group acquired it from the government, but it has yet to report a profit since the takeover.

The latest cost-saving drive suggests that Air India’s next phase will place greater emphasis on efficiency and financial discipline. The aim is not simply to spend less, but to ensure that money is used where it delivers the greatest benefit to passengers and the business.

The results will take time to emerge. The key test will be whether Air India can reduce operating costs, improve revenue and strengthen safety and service standards while continuing its transformation into a competitive global airline.

 

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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.