Why Air India chose Tewolde as CEO instead of an internal candidate

In a surprising announcement, the Board of Directors of Air India today announced the appointment of Tewolde Gebremariam as the airline’s Chief Executive Officer and Managing Director, succeeding Campbell Wilson, whose departure was announced earlier this year.

The announcement is a surprise for the aviation world because Tewolde’s name did not feature in the list of probables that was being discussed for many months, though the Tata group had not announced any probables. It is also surprising because Tewolde had made news last month as the choice of CEO for Pakistan International Airlines (PIA). Neither PIA nor Tewolde had announced this, but all news articles were driven by sources and new investors of PIA.

Tewolde Gebremariam is regarded as one of the most successful airline executives having taken Ethiopian Airlines, a star alliance member, global. Speculation was rife that the battle for the corner office was between Nipun Aggarwal, the Chief Commercial and Transformation officer at Air India and MD of Air India Express and Vinod Kannan, the last CEO of Vistara.

Both Tata group and Singapore Airlines had neither denied nor confirmed the speculation as would be the case from any mature organisation. The press release by the airline talks about the board conducting “a comprehensive search to identify the next leader for Air India, overseen by a dedicated Board committee. The committee rigorously evaluated internal as well as highly accomplished external candidates from across the world.”

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It also added that “The objective of the Board was to identify a leader with a proven record of managing mega-scale airline turnarounds, delivering operational excellence, fostering a strong culture of safety and service, and driving profitable expansion.”

This is an indication that Nipun Aggarwal was considered and may have been one or one of many candidates internally to be considered. In the end, the board seems to have opted for experience, not just in the corner office of a full service carrier but the experience to turn around an airline as CEO which was lacking by all internal candidates as well as Campbell Wilson, the outgoing CEO.

The departure of Campbell Wilson marks the end of an important chapter in Air India’s post-privatisation journey. Often dubbed as the world’s biggest airline turnaround since returning to Tata Group ownership in 2022, the airline has had its fair share of roadblocks which undoubtedly could have been handled better, even as it battled challenges like supply chain issues which were beyond the control of anyone. The airline lost over 22,000 crore INR in the last fiscal amidst its most challenging year yet with Pakistani airspace closure and the deadly crash of AI 171 at Ahmedabad.

Massive aircraft orders, brand relaunches, operational restructuring, merger integration, and product upgrades have all taken place in a relatively short span of time. Yet the hard part may still lie ahead.

Tewolde left the corner office at Ethiopian in 2022, having presided over a very successful growth phase for Ethiopian which involved handling the crisis following the aftermath of the 737 MAX 8 crash, which led to a push for global grounding of the aircraft. If the last phase was about revival and rebuilding, the next phase will be about execution, consistency, profitability, and global relevance.

Tewolde inherits both enormous opportunity and equally significant complexity. Much like Willie Walsh, who took over the helm at IndiGo on August 03, Tewolde is also on the other side of 60 and has years of experience to have a successful turnaround before he can hang his boots in pride. He converted Ethiopian with a long term vision, something which will come in handy at Air India.

Many challenges ahead

The new CEO will not simply run an airline. He will be expected to manage one of India’s most strategically important brands while competing in one of the most complex aviation markets in the world. Air India’s ongoing revival has required substantial investment. New aircraft orders, cabin retrofits, digital upgrades, talent hiring, branding exercises, and systems modernisation all come at a cost. At some stage, the focus must shift decisively from spending to returns. The new CEO will need to answer a straightforward but difficult

question: when does Air India become consistently profitable at scale?

This means balancing growth ambitions with disciplined cost control. Fleet expansion must generate yields. International routes must mature quickly. Corporate contracts must deepen. Ancillary revenues must improve. Premium cabins need stronger monetisation. For many legacy carriers, transformation is exciting in theory but expensive in practice. With Tewolde, that experience comes along when he has taken Ethiopian places, literally and figuratively.

Few have experience of managing a historic fleet induction programme at this rate, or building operational reality. The challenge will be on rebuilding premium perception after the AI171 crash and slow refurbishment process, amidst delayed deliveries. Rebranding alone cannot help win this market, the customer experience has to follow to create Air India for global opportunities.

Ameya Joshi is an aviation analyst.