Desi CEO Vs Expat: Who Is Better?

IndiGo, the country’s largest airline with a 65% market share, recently announced the appointment of aviation veteran William Walsh as CEO, replacing Pieter Elbers, who stepped down following operational disruptions under his watch.

To jog memory, between December 2 and 11, 2025, the low-cost carrier cancelled a staggering 4,290 flights without explanation, leaving 2.6 lakh passengers stranded across airports.

This appointment triggered an academic question from a friend: Why do we always need an expatriate CEO? He pointed to Aditya Ghosh, who led IndiGo between 2008 and 2018, and did a commendable job.

Why import talent when Indians like Satya Nadella, Sundar Pichai, Shantanu Narayen, and Arvind Krishna are successfully running Fortune 500 companies?

The answer, however, isn’t that simple. You need different folks for different strokes.

IndiGo promoter and MD Rahul Bhatia’s press note made the rationale clear: “He is an iconic and accomplished aviation leader and brings a rare combination of global perspective, operational expertise of having built strong customer-focused airlines, deep industry experience and a value driven leadership, making him exceptionally suited to lead IndiGo at this pivotal cusp of growth.”  A former pharma CEO echoed this sentiment, noting that global expertise is essential in aviation.

An article in The Financial Express by Yaruqhullah Khan underscores this point: “This is not an India-specific problem. Research by management consulting firm Egon Zehnder shows that airlines globally struggle with narrow internal talent pools shaped by siloed career paths, leaving few candidates equipped for the breadth and complexity of the CEO role.”

In the same FE story, former Air India Executive Director Jitender Bhargava aptly observed: “Talent matters more than nationality.”

To put things in perspective, India’s airline industry prefers expats because it is relatively a young industry compared to its Western counterparts. Private sector entered the scene only after the 1991 liberalisation. As a result, the pool of experienced leadership remains limited. Perhaps this also explains why more than 25 private airlines have collapsed in India since the 1990s.

This is why, unlike many other sectors, Indian aviation has been more open to expatriate leadership.

The Tata Group, for instance, has shown comfort with expat leadership in both aviation and automobiles. Air India and Vistara are headed by Campbell Wilson, a New Zealand national with global experience. Under his leadership, Air India introduced premium economy on select long-haul routes, which has been well received.

Similarly, GoAir (now grounded) was led by Cornelis Vrieswijk, while AirAsia India had strong expatriate influence in its early years through Tony Fernandes. At the same time, several airlines have been successfully run by Indian CEOs—SpiceJet (Ajay Singh), IndiGo (earlier Aditya Ghosh), and Jet Airways (Naresh Goyal).

Aviation, by nature, is a global business that demands international best practices. A CEO with experience in turnarounds, managing complex global networks, forging alliances, optimising fleet utilisation, and navigating safety and regulatory regimes makes the cut in India.

This is precisely what William Walsh brings to the table. Starting as a cadet pilot with Aer Lingus, he rose to become its CEO, later leading British Airways and International Airlines Group, which owns Aer Lingus, BA, Iberia, Level, and Vueling. He successfully steered British Airways through the global financial crisis.

All eyes will now be on the 64-year-old Walsh when he takes over in August.

This brings us to the larger question: Desi CEO vs Expat — who is better?

Hiring Expat CEOs: Pros & Cons

·        Global expertise: Brings process discipline, governance, and global benchmarks

·        Turnaround specialists: Often brought in during crises

·        Neutral leadership: Seen as outsiders, less prone to internal lobbying

·        Investor signalling: Viewed as a move towards professionalisation

Challenges:

·        Complexity gap: Regulatory maze, political sensitivities, cultural nuances

·        Promoter friction: Indian promoters prefer control; expats expect autonomy

·        High cost: Compensation and perks can be significantly higher

The late Ratan Tata strongly believed in global talent. I recall doing a cover story in mid-1990s for Business India on the Tata Group; at that point, it was finalising its joint venture with Mercedes-Benz. When I asked who would be in the driver’s seat, Tata dismissed it as a parochial question and responded: “Who understands the automobile sector better—Tatas or Mercedes?”

His point was leadership should be determined by capability, not nationality. Incidentally, Mercedes used Tata Motors’ Pune facility to roll out cars, though the JV did not last long.

Tata Motors itself has had expatriate CEOs like Karl Slym and Guenter Butschek, both seen as turnaround specialists. The same openness extends to Air India.

Interestingly, most multinational companies in India adopt a mixed approach based on ownership structures. German, South Korean, and Japanese firms often prefer leadership aligned with headquarters. Siemens India, for instance, has historically had German leadership. Ditto: South Korean and Japanese companies. Notably, Hyundai Motor India has, for the first time, appointed an Indian MD & CEO, Tarun Garg.

Generally, who will sit in the driver’s seat is often influenced by shareholding patterns. Maruti Udyog (now Maruti Suzuki) has traditionally had Indian CEOs, with a Japanese executive as the second-in-command.

So, does corporate India shy away from expatriates? Largely, yes—and for understandable reasons.

Most Indian businesses are family-controlled and don’t like to hand over the reins to outsiders. However professional the set may be, the CEO has to listen to the promoter-family. Expats, accustomed to autonomy and strict governance, are often uncomfortable bending rules; jugaad is a big No for them. Also, hiring expat means you have to pay them top dollar salary plus perks --- too many pluses.

Though the trip to Delhi has been considerably reduced yet there is a need to keep the ruling dispensation and key politicians in good humour. The promoter’s family is happy doing this or it is part of the CEO's KRA

Even though it boils down to managing 4 Ms – men, money, machines and markets -- but in reality, running a business in India is a different kettle of fish. Different sectors in different states have different dynamics.  Speed money and political connections are given. In some sectors like real estate you have to deal with the underworld. It’s beyond the scope and imagination of expat CEOs.

This is where a desi CEO scores; he knows the art and craft of managing the environment -- both external and internal effectively -- and in the process keeps the entire value chain humming.