‘Better than the best’: Chandrasekaran lays down Air India’s turnaround priorities as Tewolde takes charge

Air India must rebuild passenger trust, strengthen safety and impose tighter financial discipline as it enters a crucial phase of its turnaround, chairman N. Chandrasekaran told employees on Monday, as incoming chief executive officer Tewolde Gebremariam formally took charge of the airline’s next chapter.

At a town hall with employees, Chandrasekaran set an unusually high bar for Air India’s safety record, saying it should be “better than the best” airlines in the world. His remarks come as the carrier faces mounting losses and renewed scrutiny following the fatal Ahmedabad crash last year and a recent serious incident involving an Airbus A320.

The meeting also marked the formal introduction of Gebremariam, who succeeds Campbell Wilson and brings nearly four decades of aviation experience, including more than 11 years leading Ethiopian Airlines Group.

Chandrasekaran sets four priorities for Air India

Chandrasekaran said Air India’s next phase must focus on safety, customer trust, operational execution and cost discipline.

“The most important thing Air India should aspire to have is trust in the minds of people,” he said.

The airline has endured a turbulent 18 months marked by geopolitical disruptions, airspace closures, fuel-price volatility and the June 2025 crash of an Air India Boeing 787 shortly after take-off from Ahmedabad. The crash killed 260 people and triggered intense scrutiny of the carrier’s safety practices.

“Our safety record should not just match the best airlines in the world — it should be better than the best,” Chandrasekaran said.

He also called for greater cost consciousness as Air India attempts to improve its finances.

Air India faces more than $2 billion loss

Air India Group recorded a loss of more than $2 billion in the financial year ended March 2026, compared with about $1.13 billion a year earlier, according to Singapore Airlines, which owns 25 per cent of the group.

The airline has not returned to profit since Tata Group took control in January 2022.

At the same time, Air India has more than 500 aircraft on order and continues to invest in fleet renewal, cabin refurbishment, technology and integration following the merger with Vistara.

Chandrasekaran has previously described the turnaround as a five-to-10-year effort. The group is also close to securing about ₹10,000 crore in financial support from Tata Sons and Singapore Airlines.

Tewolde puts safety and reliability at the centre

Gebremariam told employees that safety would be the foundation of his leadership.

“Safety-first culture has to be the number one priority,” he said, adding that if something is not right, “it should be stopped.”

The former Ethiopian Airlines chief said Air India had a strong heritage, brand and potential.

“If we do the right things at the right time, the sky is the limit.”

He also said: “We will Make Air India Great Again (MAGA),” echoing US President Donald Trump’s “Make America Great Again” slogan.

For passengers, Gebremariam said the priority would be getting the basics right.

“Operational excellence is about getting the basics right every day -- on-time departures, on-time arrivals, baggage delivery and clean aircraft,” he said.

“We need to minimise disruptions and when they do occur, handle them professionally and take care of our customers,” he said.

He also urged employees to support the transformation.

“We cannot bring about meaningful change without the commitment of our people.”

Recent A320 incident adds to safety scrutiny

Gebremariam takes charge as Air India faces fresh questions over safety following an August 4 incident involving an A320 flying from Phuket to New Delhi.

A preliminary investigation found that all three hydraulic systems briefly lost pressure, leaving key flight controls unresponsive for several seconds. The aircraft recovered and landed safely, but 24 passengers and crew members were injured.

The incident was subsequently classified as an accident. A drug test on the flight’s captain returned a non-negative result for a psychoactive substance. Air India terminated the pilot’s employment and introduced mandatory substance testing for all pilots.

Investigators have not established a link between the test result and the hydraulic-system failure.

The incident has nevertheless added to scrutiny following the Ahmedabad crash and earlier regulatory concerns over Air India’s operational and compliance processes.

Tewolde inherits an airline in transformation

Gebremariam joined Ethiopian Airlines in 1985 and rose through roles in cargo, commercial operations and management before becoming group chief executive in 2011.

At Air India, however, his challenge will be different: stabilising an enlarged airline while improving safety, rebuilding passenger confidence and bringing losses under control.

The leadership transition comes as Chandrasekaran prepares to leave the Tata Sons chairmanship when his current term ends on February 20, 2027. His message to employees on Monday made clear that Air India’s revival remains a central priority as the airline enters its next phase.

(With Bloomberg inputs)