Air India Appoints Tewolde Gebremariam to Strengthen Turnaround Efforts Amidst Safety and Financial Challenges

NEW DELHI: The Tata Group has appointed Tewolde Gebremariam as the new leader of Air India, marking a significant shift in the airline’s turnaround strategy. Tewolde, who previously served as CEO of Ethiopian Airlines, is tasked with addressing critical safety concerns and financial losses while modernizing an aging fleet.

Tewolde’s appointment comes after a series of crises, including a tragic Ethiopian Airlines crash in 2019 that resulted in 157 fatalities and led to the global grounding of Boeing 737 MAX jets. This experience, coupled with his management during the COVID-19 pandemic, positions him uniquely to tackle the challenges facing Air India, which suffered a crash last year that claimed 260 lives.

The Tata Group, which holds approximately 75% of Air India, is shifting its focus from merging with Vistara and expanding its aircraft orders to ensuring the airline operates safely and profitably. Singapore Airlines owns the remaining stake in Air India.

In May, reports indicated that the search for a new leader had narrowed down to two candidates: Nipun Aggarwal, Air India’s commercial chief, and Vinod Kannan, the former CEO of Vistara. However, Tewolde’s selection as an outsider reflects a strategic pivot for the airline.

Air India and Ethiopian Airlines did not respond to requests for comment, and Tewolde did not reply to a LinkedIn message.

Tewolde’s Background and Experience

An internal Air India document describes Tewolde as a “change leader” with expertise in crisis management. He joined Ethiopian Airlines in 1985 and rose through the ranks to lead Africa’s largest airline group. Under his leadership, Ethiopian Airlines became the continent’s leading carrier, investing $1 billion to enhance its Addis Ababa hub, which now includes Africa’s largest cargo terminal, an aviation university, maintenance facilities, a catering center, and a 1,000-room hotel.

Tewolde is set to replace Campbell Wilson, who resigned in April, with his notice period concluding on September 30. The timeline for Tewolde’s official start date has not been disclosed.

Navigating Crises and Competition

Tewolde’s most significant challenge arose on March 10, 2019, when Ethiopian Airlines Flight 302 crashed shortly after takeoff. He took immediate action by grounding the airline’s remaining 737 MAX jets, anticipating regulatory actions from authorities in China and the United States.

The COVID-19 pandemic further complicated matters, decimating Ethiopian Airlines’ passenger business. Without a government bailout, Tewolde pivoted to cargo operations, utilizing freighters and converting passenger aircraft for freight transport.

The internal document highlights Tewolde’s ability to manage in a “hyper-competitive environment,” a skill that will be crucial in India, where IndiGo dominates domestic traffic and foreign airlines aggressively pursue international routes. Additionally, the June 2025 crash of an Air India Boeing 787 Dreamliner has intensified regulatory scrutiny, leading to warnings and penalties for safety and compliance issues.

Tewolde has experience in India, having managed Ethiopian Airlines’ operations in the region during the mid-1990s. He departed Ethiopian Airlines in March 2022 due to health concerns and has since advised Delta Air Lines on international business and the World Bank’s International Finance Corporation on aviation investments in emerging markets.

Challenges Ahead for Air India

As Tewolde takes the helm, he faces the daunting task of managing a larger and more complex organization. Air India and its budget subsidiary reported losses exceeding $2 billion in the last financial year. The airline has reduced international flights due to Pakistan’s airspace ban and the ongoing conflict in Iran, which have increased operational costs.

The airline is also awaiting the final report on last year’s crash. Recently, Air India Chairman N. Chandrasekaran indicated that the turnaround process could take up to a decade. Other safety lapses have been reported, including an incident where an Airbus jet completed eight passenger flights without a mandatory airworthiness permit. An internal investigation revealed “systemic failures” and a pressing need for improved compliance.

Tewolde has emphasized that Ethiopian Airlines thrived as a state-owned entity because it allowed professionals to manage operations effectively. He stated, “The owners should not be managers,” underscoring the importance of professional leadership in the aviation sector.

Source: www.emirates247.com

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Published on 2026-08-06 13:56:00 • By the Editorial Desk