Incoming Air India CEO Tewolde Gebremariam plans to introduce programmes that reward employees for ideas that deliver measurable cost savings and improve operational efficiency, as the Tata Group-owned airline seeks to strengthen its financial performance while sharpening its focus on safety and operational reliability.
Gebremariam, who will take charge after receiving the requisite security clearances, said at a townhall with employees on Monday that cost discipline must become part of Air India's culture.
He also identified sustainable profitability, safety and operational reliability as key priorities for the airline.
"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," he said.
Seeking to send out a positive message to the employees, he said, "wherever you are in the organisation, you will be empowered to make decisions that help our customers and supported in delivering the right outcomes".
Stressing that safety is a shared responsibility and every Air Indian has a role to play, Gebremariam said a culture should be fostered where people are empowered to speak up, raise concerns and report issues without hesitation.
"If you see something, say something. The stronger our reporting culture, the stronger our safety culture," he told the staff.
The remarks also come against the backdrop of a pilot testing positive for drug use and another pilot failing breath analyser test.
"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," he said at a townhall.
Gebremariam, who has been appointed as the CEO and MD of the loss-making Tata Group-owned airline, will take charge after receiving requisite security approvals.
In his second interaction with employees in recent weeks, Gebremariam said the airline plans to introduce programmes that reward ideas that generate measurable cost savings and operational efficiencies.
According to him, a combination of external factors has affected Air India's path to break even but stressed that the airline cannot afford to lose focus on financial performance.
"We must improve both revenue and cost performance. Revenue enhancement initiatives are already under discussion, including opportunities across our international network, commercial activities and cargo business," he said.
An Ethiopian Airlines Group veteran, Gebremariam will be the second foreign CEO at Air India and will be taking over the reins at a time when the airline is working on its ambitious expansion plans amid multiple external headwinds.
Gebremariam said Air India is operating in a challenging operating environment marked by geopolitical developments, airspace restrictions affecting Indian carriers, elevated fuel prices and uncertainty in key international markets.
"We must improve both revenue and cost performance. Revenue enhancement initiatives are already under discussion, including opportunities across our international network, commercial activities and cargo business," he said.
In the 2025-26 financial year, Air India's consolidated loss widened to Rs 22,238.23 crore from Rs 10,858.83 crore in the year-ago period.
Gebremariam also said that scale is critical in a business characterised by high capital investment, significant fixed costs and intense competition.
"Growth is the oxygen of business. But growth must also be profitable and sustainable. We will pursue expansion in a disciplined manner and ensure our people, fleet and network are ready to support it," he said.
Besides, Air India continues to evaluate opportunities to enhance network efficiency, optimise fleet deployment and rebalance operations to improve long-term competitiveness.
Describing the efforts taken by the employees in the airline's transformation journey as "heavy lifting", he said in the last four years, a great deal has been achieved.
"At the same time, there remains significant opportunity ahead of us," he said and highlighted India's favourable demographics, strong economic growth, geographic position and large global diaspora provide a unique foundation for the airline's future success.
"We are already one Air India Group and we will streamline and synergise wherever possible while retaining focus on customers," he noted.
The group comprises Air India and Air India Express.