Two new CEOs, two aviation battles: What lies ahead for Air India and IndiGo

The two major Indian aviation airlines, IndiGo and Air India, have seen crucial leadership changes. The two industry veterans, Willie Walsh and Tewolde Gebremariam, officially took charge as Chief Executive Officers for IndiGo and Air India respectively, with Tewolde also serving as the Managing Director for Air India.

Both leaders enter the Indian aviation industry at a turning point as presently the industry finds itself grappling with several challenges. These include the need for more airport capacity, rising passenger demand, unpredictable crude oil prices and ongoing supply-chain problems. Together, the two airlines handle nearly 90% of India’s domestic air traffic.

With the ongoing domestic and geopolitical turbulence, both captains need to chart their own courses for their respective airlines.

AIRLINES TO FACE TURBULENCE AHEAD?

IndiGo and Air India have hit some common bumps on the road in their journey till here.

The first major hurdle was the closure of Pakistan’s airspace last year after the tragic Pahalgam terror attack.

The second is the steeping rupee depreciation against the US dollar, which means expensive ATF (aviation turbine fuel).

The third is the West Asian airspace disruption that changed the airway routes.

More particularly, the airlines had their own share of regulatory problems as well.

Air India, in particular, has faced increased regulatory scrutiny following the fatal crash of its Boeing 787 last year, killing 260 people. Recent compliance issues have added to those concerns, including reports of an Airbus aircraft operating several passenger flights without a valid airworthiness certificate. Together, these developments have raised questions about the airline’s regulatory standards.

IndiGo, meanwhile, has faced its own set of operational and regulatory challenges. The airline came under scrutiny after large-scale disruptions in December 2025 led to 2,507 flight cancellations and 1,852 delays, affecting more than three lakh passengers.

A subsequent DGCA enquiry attributed the disruption to issues including over-optimisation of operations, inadequate regulatory preparedness, weaknesses in software support and shortcomings in management and operational control.

THE AIR INDIA BLUEPRINT

For Air India’s new CEO, Tewolde Gebremariam, the immediate task seems less about chasing rapid growth and more about getting the airline’s fundamentals right. The airline has undergone a major transformation since the Tata Group took control in 2022. These include the merger of Vistara and the expansion and renewal of its fleet.

But it is still dealing with heavy losses, regulatory scrutiny and operational challenges.

Air India said in its press release,“ Gebremariam has strong experience in expanding international long-haul networks and building world-class hub operations, an unrelenting commitment to safety standards, engineering quality, and operational reliability. He also has a track record of driving sustained profitability.”

The Tata-owned airline hopes that the recent appointment of the new CEO will ensure greater safety, operational reliability, cost control and profitability.

Gebremariam, who previously led Ethiopian Airlines, is taking over at a time when Air India needs to strengthen its operations and restore confidence before it can fully capitalise on its expansion plans.

This means that Gebremariam is expected to fix the foundation of the airlines in order to improve reliability and profitability, and restore public confidence.

A DIFFERENT PATH FOR INDIGO

Walsh, on the other hand, takes charge of an airline that dominates India’s domestic market with more than 60% market share. Data shows that IndiGo has consistently outperformed rivals in its profitability and operational reliability.

In the airline’s announcement of Walsh as the CEO, it said that Walsh will lead the airline’s overall management and strategic direction.

He arrives, as per the announcement, “with a focus on accelerating the airline’s global growth trajectory, driving operational excellence, strengthening its network and commercial strategy, and further enhancing the customer experience.”

For IndiGo, therefore, the bigger aspect is how far and how quickly it can scale while maintaining its cost advantage.

Walsh, who had previously pioneered cost-cutting for airlines, now faces a different challenge. As IndiGo is renowned for being among the world’s most cost-effective airlines, cost-cutting would not be his main focus. Instead, he is expected to focus on strengthening operations while expanding IndiGo’s commercial strategy.

WHAT TO WATCH OUT NEXT?

For investors, the key indicators to watch would be operational performance, international expansion, profitability, fleet induction and how effectively each airline executes its long-term strategy.

The key question is not simply which airline has the larger fleet or the bigger market share. But it is whether each airline can execute the strategy suited to the stage of growth it is entering.

Air India’s challenge is to prove that its turnaround can deliver sustainable results. These results may be driven through stronger operations, improved service standards and a clearer path to profitability.

Whereas, IndiGo seeks to leverage its domestic dominance to build a larger international presence while maintaining the efficiency that has long defined its success.

The industry anticipates that the success of these two CEOs could lead the direction of India’s aviation sector, as it prepares for its next decade of growth.

– Ends