Drugs, alcohol, bicycle & losses: The strange to-do list awaiting Air India’s new boss Tewolde Gebremariam

Air India’s new boss has plenty waiting on his desk, and not all of it is the usual airline business of adding planes and opening routes.

Tewolde Gebremariam takes charge of an airline with hundreds of aircraft on order and ambitions to become a global aviation powerhouse.

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


But his immediate to-do list is considerably messier: record losses, the need for fresh shareholder funding, maintenance problems and questions around employee conduct and operational discipline.

Recent months have thrown up an unusual collection of incidents.

An Air India pilot was removed from a Zurich flight over an alcohol violation.

Another pilot tested “non-negative for psychoactive substances” after an A320 suffered a sudden altitude drop.

Air India Express has dealt with an alleged assault involving one of its pilots, while another employee came under investigation over a bomb threat note.

Then there was an immigration lapse involving three passengers, a former cabin crew member purportedly filmed inside a cockpit and even a Rs 3-lakh bicycle that ended up on a regular baggage carousel despite its owner paying for special handling.

In other words, Tewolde isn't short of planes. He has to figure out how to pay for them, staff them, maintain them — and make money flying them.

The money problem is considerably bigger

Air India posted a loss of about Rs 22,238.23 crore in the year through March, putting the financial side of its turnaround near the top of Tewolde’s agenda.

The airline has sought about $1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines.

Tata Sons has approved about $1.1 billion, representing its share of the proposed infusion, while Singapore Airlines is yet to sign off on its portion and is seeking tougher terms before committing fresh capital.

Also Read: Air India staff suspended after passengers bypass immigration at Delhi airport

The Tata Sons funding is expected to be released in installments and tied to performance milestones.

Tata Sons owns 74.9% of Air India, with Singapore Airlines holding the remainder.

Singapore’s government has made clear that the decision on committing more money rests with Singapore Airlines.

“We should leave it to SIA to decide what it does with its investments,” Singapore Senior Minister K Shanmugam said. “Of course, SIA shareholders, as well as the broader public, have a right to expect that SIA will be accountable and transparent. People have a right to expect that there will be a rigorous assessment before money is committed.”

Cost cutting could therefore become an important part of Tewolde’s strategy.

The incoming CEO is considering folding Air India Express into the wider group, according to Bloomberg citing people familiar with the discussions.

Tewolde has questioned managers about the need to operate two airline companies with separate operating permits. A single airline group could reduce regulatory requirements and the need for separate sets of managers, engineers and administrative staff, the Bloom report said.

Then come the people problems

Fixing the finances, however, will not solve everything.

On September 6, an Air India pilot was removed from an aircraft at Zurich airport before departure after authorities found him under the influence of alcohol. Subsequent sobriety tests showed blood alcohol content above the permissible limit.

The Swiss Federal Office of Civil Aviation said the episode prevented flight AI151 from operating as scheduled and that India’s Directorate General of Civil Aviation had been informed.

Air India officials said the incident was reported by the airline’s own staff, which they argued showed that its safety monitoring mechanisms were working.

“There will be some bad apples. The expectation is that responsible colleagues will report any dereliction in duty. Safety remains the cornerstone of Air India,” an official said.

That came after another case involving an Air India pilot. An A320 flying from Phuket to Delhi in August suffered a sudden altitude drop that injured several passengers and crew members.

Also Read: Air India's incoming CEO Tewolde Gebremariam weighs folding budget arm AI Express into group to cut costs

The Aircraft Accident Investigation Bureau’s preliminary report classified the episode as an accident and said recovered data showed that all three hydraulic systems failed before recovering within seconds.

The report recommended that the DGCA take appropriate action against the pilot in command, who tested “non-negative for psychoactive substances.” Air India terminated his service. The final AAIB report is pending.

Air India Express has had its own employee conduct problem. A pilot was removed from official duties after a passenger alleged that the employee physically assaulted him at Delhi airport on December 19.

The pilot was off duty and travelling on another airline at the time.

The civil aviation ministry ordered the pilot grounded and a formal investigation. Air India Express said it “unequivocally condemn[s] such behaviour” and that disciplinary action would depend on the inquiry findings.

In another unusual episode, the first officer of an Air India Express flight from Dammam to Delhi came under investigation after a bomb threat note was discovered aboard the aircraft, forcing an emergency landing in Ahmedabad on August 31.

Police sources said investigators found similarities between the handwriting on the note and samples taken from the first officer.

The investigation was subsequently handed to the National Investigation Agency. Air India Express said law enforcement agencies were investigating and that it was cooperating. No conclusive finding had been shared with the airline at the time.

From immigration to a bicycle

Operational lapses have added another layer.

Three Italian passengers travelling from Amritsar to Delhi on September 4 were subsequently allowed to board a Lufthansa flight to Munich without completing the required immigration process in Delhi.

Instead of exiting through arrivals and completing immigration, they were directed to the international transfer area. Air India suspended personnel involved in escorting them, while the civil aviation ministry issued a show-cause notice to the airline.

Then there is the bicycle.

A Karnataka consumer commission directed Air India Express to pay Rs 27,000 after a passenger who paid Rs 2,000 for special handling of his racing bicycle found it on the regular baggage carousel at Mangalore airport.

The bicycle was not damaged, but the commission found that the airline had failed to provide the special handling service promised to the passenger. It ordered a refund of the Rs 2,000 fee and another Rs 25,000 in compensation and litigation costs.

Maintenance also needs attention

Tewolde has already asked employees to develop a plan to reduce maintenance issues, Bloomberg reported.

A June incident illustrated the challenge.

Passengers aboard an Air India Boeing 787 flying from Delhi to Hong Kong reported shaking and hissing noises from a door. Cabin crew used paper napkins around a gap in the decorative door panel to reduce the noise while the aircraft continued to Hong Kong.

Air India said there was no safety risk and that engineering checks after landing found all safety parameters in compliance.

The airline has separately opened an investigation after a video circulated online purportedly showing a former cabin crew member sitting inside an aircraft cockpit during a flight. Air India said it was verifying the video’s authenticity and whether its safety protocols had been followed.

Tewolde was chosen in large part for his record at Ethiopian Airlines, which grew into Africa’s largest and one of its most profitable carriers under his leadership.

At Air India, the assignment is different in scale and complexity.