Tewolde Gebremariam Faces Uphill Battle Reviving Air India
Former Ethiopian Airlines chief aims to restore profitability despite mounting losses and operational hurdles.
1Leadership Transition at Air India
Tewolde Gebremariam, former CEO of Ethiopian Airlines, has taken the helm at Air India to lead a major turnaround. Appointed in August, he aims to restore profitability for the loss-making carrier. During a November 3 conference in New Delhi, he expressed impatience for financial success, though he provided no specific timeline.
2Proven Track Record in Africa
Gebremariam previously transformed Ethiopian Airlines into an aviation powerhouse between 2011 and 2022. Under his leadership, annual revenue surged from US$1 billion to US$4.5 billion. The fleet expanded from 33 to 130 aircraft, while annual passenger numbers quadrupled to 12 million, establishing Addis Ababa as a critical global transit hub.
3Divergent Operational Realities
Analysts warn that the challenges at Air India are fundamentally different from his previous tenure. Ethiopian Airlines was already profitable when he assumed control in 2011. Conversely, Air India is currently grappling with significant losses, intense market competition, and complex operational constraints that make a direct strategy replication impossible to execute.
4Singapore Airlines Investment Stakes
Singapore Airlines holds a 25.1 percent stake in Air India, which is under increasing scrutiny due to the carrier's financial struggles. Following a US$1.1 billion capital infusion from Tata Group in September, Singapore Airlines has demanded stronger governance rights before committing further funds to support the airline's ongoing recovery and expansion efforts.
5Strategic Expansion and Hubs
Gebremariam plans to expand the international network by acquiring more long-haul, wide-body aircraft. He is also exploring Bengaluru as a potential third major hub, joining Delhi and Mumbai. The goal is to connect domestic passengers to international routes, leveraging India's vast domestic market to fill seats on long-haul flights to Europe.
6Financial and Safety Pressures
Air India and its subsidiary reported combined losses of US$2.33 billion for the financial year ending March 2026. The airline is also managing the aftermath of the June 2025 Flight AI171 crash, which claimed 260 lives. This disaster has intensified regulatory scrutiny regarding safety standards and overall operational compliance across the carrier.
7External Obstacles to Growth
Expansion efforts face significant headwinds, including Pakistan's airspace restrictions on Indian carriers, which have been in place since April 2025. These constraints force longer flight paths to Europe and North America, significantly increasing fuel consumption and operating costs. Consequently, the airline is shifting focus toward more accessible eastbound markets like Australia.
8Cost-Cutting and Restructuring
To stem losses, the airline has implemented stricter spending approvals and established a dedicated team for cost savings. Reports indicate Gebremariam is considering a merger between Air India and its budget subsidiary, Air India Express. This move aims to eliminate overlapping functions and streamline operations to improve overall efficiency and reduce expenditures.
9Market Competition Challenges
The Indian aviation market remains highly price-sensitive, limiting the airline's ability to pass rising fuel costs onto passengers. Air India faces fierce competition from domestic leader IndiGo and established international carriers. Analysts note that without a competitive edge, raising fares to offset expenses could negatively impact demand and passenger volume.
10Infrastructure and Hub Limitations
Experts highlight that Air India lacks dedicated hub facilities at Indian airports, which hinders seamless passenger transfers. Building a competitive international network requires closer cooperation with airport operators to consolidate operations within terminals. Without these improvements, the airline may struggle to attract transit passengers away from established hubs like Dubai or Singapore.
11Long-Term Outlook for Recovery
While Gebremariam possesses the necessary experience to lead this turnaround, industry analysts estimate the process will take three to five years. Success depends on securing fresh capital, managing safety investigations, and navigating geopolitical airspace restrictions. A swift return to profitability remains unlikely given the depth of the current structural and financial challenges.
Original article: CNA – Asia — Tewolde Gebremariam Faces Uphill Battle Reviving Air India