2 weeks ago
Air India's turnaround enters next test under new leadership
Air India is a very big airline in India, and it is owned by a big company called Tata Sons.
Right now, Air India is losing a lot of money - more than twice as much money as it lost the year before.
The airline is spending a lot of money on new planes, nicer seats, and new technology to make the airline better.
The leaders of Tata Sons say fixing the airline will take five to ten years, not just a few months.
A new boss for Air India has been chosen - his name is Tewolde Gebremariam, and he used to run Ethiopian Airlines.
The old boss, Campbell Wilson, is leaving by the end of September.
Air India has ordered almost 600 new planes, which means there will be many more flights starting in 2027.
But the flying business is hard right now because jet fuel is expensive and some air routes are closed.
The next leader of Tata Sons will have to decide how to balance growing the airline with making money.
The big question is whether all this spending will pay off in the future.
Air India and Air India Express reported a net loss of Rs 22,238 crore in FY26, more than double the previous year.
The losses came even as the group continued spending on fleet renewal, cabin refurbishment, technology and integration.
Former Ethiopian Airlines chief Tewolde Gebremariam has been appointed Air India's CEO, replacing Campbell Wilson.
Air India's nearly 600-aircraft orderbook is expected to significantly increase capacity from 2027.
Airspace restrictions and high jet fuel prices have forced Air India to rationalise several international routes.
- Who
- Air India, its parent Tata Sons, outgoing chairman N Chandrasekaran, incoming CEO Tewolde Gebremariam and outgoing CEO Campbell Wilson
- What
- Air India reported a net loss of Rs 22,238 crore in FY26 and appointed a new CEO as its turnaround enters its next phase
- Where
- India
- When
- FY26; Campbell Wilson is set to step down by September 30
- Why
- Spending on fleet renewal, cabin refurbishment and integration is outpacing returns, while airspace restrictions and high jet fuel prices have hurt operations
Key facts
- Net loss (FY26)
- Rs 22,238 crore (Air India and Air India Express combined)
- Loss change
- More than double the previous year
- Aircraft orderbook
- Nearly 600 aircraft
- New CEO
- Tewolde Gebremariam, former Ethiopian Airlines chief
- Outgoing CEO
- Campbell Wilson, stepping down by September 30
- Turnaround timeline
- Viewed as a five-to-10-year journey
- Parent group
- Tata Sons
- Capacity growth
- Significant increase expected from 2027
Quotes
Tewolde Gebremariam
Newly appointed CEO of Air India, former chief of Ethiopian Airlines
“I am committed to making Air India commercially sustainable and building on the progress already made.”
financialexpress.com










