New Delhi, Sept. 28 -- Air India's incoming chief executive Tewolde Gebremariam has put profitability and cost discipline at the centre of his strategy to turn around the airline, signalling that the Tata group-owned carrier's next phase of expansion will have to be backed by stronger financial performance.

"We must improve both revenue and cost performance," said Gebremariam, according to an employee who attended the Air India town hall on Monday. "Revenue enhancement opportunities are already under discussion, including opportunities across our international network, commercial activities and cargo business," Gebremariam said.

On the revenue side, he specifically referred to improving revenue per available seat kilometre (RASK), or th...