Air India’s incoming CEO Tewolde Gebremariam is looking at ways to cut costs and increase revenue as the Tata Group-owned airline works to improve its financial performance.
Speaking at a town hall on Monday, Gebremariam said the airline needed to focus on both revenue growth and cost control to achieve sustainable profitability. He said external challenges had affected Air India’s progress towards breaking even, but financial performance remained a key priority.
“Cost management is not just the responsibility of leadership or the finance function. Every employee can contribute to savings, and those savings add up across an organisation of our scale,” the 61-year-old executive said.
Rewarding staff ideas
Gebremariam said Air India plans to introduce programmes to recognise and reward employees whose suggestions result in measurable cost savings or improve operational efficiency.
He did not provide details on when the programmes would be launched or how the rewards would be decided.
The airline is also exploring new ways to increase revenue from its international network, commercial operations and cargo business. Gebremariam said efforts to boost earnings would have to go hand in hand with controlling expenses.
Air India is also reviewing aircraft utilisation, its network and various operational processes. While the airline plans to continue expanding, Gebremariam said its fleet, network and workforce would need to be prepared for that growth.
“Growth is the oxygen of business. But growth must also be profitable and sustainable,” he said.
Air India faces rising losses
The focus on costs comes as Air India continues to deal with significant financial and operational pressures.
The airline reported a loss of Rs 22,238 crore in FY26, more than twice the Rs 10,859 crore loss recorded in the previous financial year.
Pakistan’s airspace restrictions have forced some Air India flights to Europe and North America to take longer routes, increasing operating costs. The conflict in West Asia has also disrupted flights and added pressure on fuel expenses.
The airline is also facing increased regulatory scrutiny following the fatal AI171 crash in Ahmedabad last year. A subsequent DGCA audit pointed to safety-related lapses, adding another challenge for the new leadership as Air India works on expanding its fleet and network.
Gebremariam’s experience
Gebremariam previously headed Ethiopian Airlines, where he oversaw a period of significant expansion in its fleet, international network and cargo operations.
His experience in expanding and developing the African carrier is among the factors behind Air India bringing him in as it looks to grow while improving its financial performance.
He is expected to take over from Campbell Wilson in October, subject to the required security clearances. Wilson has been leading Air India since 2022, when the Tata Group took control of the airline from the government.