Tewolde Gebremariam Appointed Air India CEO Amid Financial and Safety Turbulence
The former Ethiopian Airlines CEO faces significant challenges including financial losses and the aftermath of a fatal crash as Air India enters a new phase of growth.
Air India has appointed Tewolde Gebremariam as its new chief executive, tasking him with navigating the airline through considerable financial losses and safety concerns. Gebremariam, who previously served as CEO of Ethiopian Airlines for over a decade, succeeds Campbell Wilson, who stepped down in April.
Gebremariam's tenure at Ethiopian Airlines saw the carrier grow into one of Africa's largest and most profitable airlines, expanding its fleet nearly threefold. Air India chairman N Chandrasekaran stated that Gebremariam was unanimously chosen by the board for his leadership and operational expertise to guide the airline's "next phase of growth." Chandrasekaran noted that after an initial phase of stabilization and integration, Air India is now entering a critical execution and expansion era.
Air India, acquired by Tata Group from the Indian government in 2022, operates 198 aircraft and operates nearly 5,000 weekly flights to 91 domestic and international destinations. Wilson, who had been with the airline since Tata Group's acquisition, had signaled his intention to step down in 2026 and had been preparing for a transition. Gebremariam expressed his ambition to build a "world-class global airline" that reflects India's economic potential.
However, Gebremariam inherits an airline facing substantial hurdles. These include the ongoing ramifications of a fatal crash in June that killed 260 people. The final report on this incident is expected in October. The airline also reported a record loss of nearly $2.3 billion in the past month, with Chandrasekaran cautioning that a full turnaround could take up to a decade. Air India has also reduced its international operations by nearly a third.
Operational setbacks have also affected the airline, including a Delhi-Vancouver flight that returned after eight hours due to a lack of Canadian airspace clearance. These challenges occur within a broader context of the Indian aviation sector grappling with rising costs, disrupted international routes due to geopolitical events, delays in aircraft deliveries, and increased regulatory scrutiny.