Air India's new CEO faces financial and safety turbulence

Tewolde Gebremariam, formerly the head of Ethiopian Airlines, has been appointed as the new CEO of Air India, taking the helm as the airline navigates significant financial and safety challenges.

Gebremariam steps into the role previously held by Campbell Wilson, who departed in April. Wilson, a former Singapore Airlines executive, was brought in after the Tata Group acquired Air India from the Indian government in 2022. He had indicated in 2024 his intention to leave in 2026 and had been preparing for a smooth transition.

Air India's board unanimously selected Gebremariam after an extensive search, citing his leadership and operational expertise as crucial for guiding the airline's "next phase of growth." N Chandrasekaran, Air India chairman, stated that with the initial phase of "stabilisation, integration, and fleet commitments" under Wilson's leadership complete, Air India is now entering a "critical execution and expansion era."

Gebremariam previously led Ethiopian Airlines for over a decade, transforming the regional carrier into one of Africa's largest and most profitable airlines. During his tenure, he was credited with nearly tripling the fleet. He has expressed his eagerness to build a "world-class global airline" at Air India that "reflects India's extraordinary economic potential."

However, Gebremariam faces a formidable task at Air India. The airline is contending with a series of safety and operational issues, most notably the fatal Ahmedabad-London crash last June, which resulted in 260 fatalities and significantly impacted its ambitions. The final report on this crash is expected in October.

Since its return to private ownership, Air India has continued to struggle, reporting a record loss of nearly $2.3 billion (£1.7 billion) last month. Chandrasekaran has cautioned that a turnaround could take up to a decade. The airline has also reduced nearly a third of its international operations.

Operational setbacks have also plagued the airline, including a Delhi-Vancouver flight in March that had to turn back after almost eight hours due to a lack of clearance to enter Canadian airspace.

These internal struggles coincide with broader pressures on India's aviation sector, including rising costs, disrupted international routes due to the Iran war, delays in aircraft deliveries, and increased regulatory scrutiny.

Aviation experts speaking to the BBC suggested that Gebremariam might be the leader Air India needs, highlighting his experience in navigating Ethiopian Airlines through two major crises: the 2019 Boeing 737 Max crash that killed 157 people and the Covid pandemic, during which the airline remained profitable by expanding its cargo business as passenger revenues plummeted. Sanjay Lazar, CEO of Avialaz Consultants, told the BBC that Gebremariam "endeared himself to his employees during both these black swan events, especially his backing of the pilots and engineers at Ethiopian."

Experts believe Gebremariam's priorities at Air India will include rebuilding workplace culture, boosting employee morale, accelerating delayed fleet expansion and refurbishment, and reshaping the airline's network to stem losses.

Air India has not yet announced when Gebremariam will officially assume his new role, stating that details will be provided later.