Air India's new chief sets sights on higher revenue and cost curbs at first town hall

Mumbai: Air India's new chief executive Tewolde Gebremariam is shifting the focus of the airline's next phase towards improving financial performance, with higher revenue, tighter costs and greater synergies across the enlarged group emerging as key priorities.

In his first town hall with employees, Gebremariam said Air India needs to boost "topline, middle line and bottom line" with revenue improvement, including a focus on raising revenue per available seat kilometre, or RASK, a key measure of how much an airline earns from the capacity it operates.

Also Read: Air India to resume Delhi-Tel Aviv direct flights from December 1, restoring India-Israel air link


"We need to control the middle line, top line and bottom line needs to improve," Gebremariam said, according to employees present at the meeting.

The comments come as Air India seeks to strengthen its financial health after a four-year transformation under the Tata Group that included the integration of Vistara and the creation of a larger airline group. Gebremariam is expected to assume the role of CEO and managing director after receiving the necessary regulatory approvals.

The airline's passenger footfall declined about 18% and booking demand fell more than 15% in the financial year ended March 2026, according to the company's board report filed with the ministry of corporate affairs.

Gebremariam said revenue opportunities are being explored across Air India's international network, commercial activities and cargo business. Improving RASK would be central to increasing the returns generated from the airline's existing capacity, while better fleet and network deployment would help improve efficiency.

On costs, Gebremariam told employees that managing expenses can't be left solely to the finance function or senior management.

"Every employee needs to manage costs at his level," he said, underscoring the need for cost discipline across the organisation. He also called for Air India and its subsidiaries to operate as a single group, saying the airline needs to start functioning as "one Air India, one Air India Group". More synergies are being explored across the group, he said.

Also Read: Air India pilot removed from Zurich flight over alcohol violation

Asked by an employee whether a merger of the two airlines was being considered, Gebremariam said, "more synergies are being explored", without referring to a merger.

He also reiterated safety and operational reliability as priorities, saying the airline needs to improve punctuality, baggage handling and disruption recovery to rebuild customer confidence. Gebremariam said Air India would continue to pursue growth but in a disciplined manner, considering its fleet availability, network requirements and profitability.