Key facts
- Air India has appointed Tewolde Gebremariam, former CEO of Ethiopian Airlines, as its new chief executive.
- Gebremariam is tasked with addressing significant financial losses and safety concerns.
- Air India reported a record loss of nearly $2.3 billion last month.
- The airline is still dealing with the aftermath of a fatal crash in Ahmedabad last June.
- Gebremariam's priorities include rebuilding workplace culture, employee morale, and fleet expansion.
Air India has appointed Tewolde Gebremariam, the former chief executive of Ethiopian Airlines, as its new CEO. This move comes as the airline faces significant financial difficulties and the ongoing repercussions of a fatal crash that occurred last year. Gebremariam, who led Ethiopian Airlines for over a decade and is credited with its expansion and profitability, takes over from Campbell Wilson.
Under Tata Group's ownership since 2022, Air India has experienced operational turbulence. The airline reported a record loss of nearly $2.3 billion last month, and its chairman has cautioned that a turnaround could take up to ten years. The company has also reduced its international operations by approximately one-third and faced operational setbacks, such as a flight diversion due to airspace clearance issues.
Gebremariam's tenure at Ethiopian Airlines saw its fleet nearly triple in size and established it as Africa's most profitable airline. Aviation experts suggest his experience navigating crises, including the 2019 Boeing 737 Max crash and the COVID-19 pandemic, makes him a suitable leader for Air India's challenges. His priorities are expected to include improving workplace culture, boosting employee morale, accelerating fleet modernization, and optimizing the airline's network to reduce losses.