The new chief of Air India, Tewolde Gebremariam, has set up a committee to look for ways to reduce costs, including by rationalizing certain teams of the airline and Air India Express, according to sources.
Air India, jointly owned by the Tata Group and Singapore Airlines, posted a combined loss of ₹22,238.23 crore in the financial year 2025-26.
Gebremariam, a veteran of Ethiopian Airlines, officially became the Chief Executive Officer and Managing Director of Air India on October 1. He is the second foreign Chief Executive Officer and Managing Director to lead the airline.
The source told PTI that a committee has been formed under Gebremariam to find ways to reduce costs.
Merging certain Air India and Air India Express teams, and relocating office space occupied by Air India Express to reduce rental costs are among the measures being looked at, sources said.
The source also said Air India’s board of directors is scheduled to hold a meeting on Thursday where cost-saving measures will also be discussed.
Queries sent to Air India seeking comment on the committee did not elicit an immediate response.
On September 28, Gebremariam told staff that cost discipline must be part of Air India’s culture and identified sustainable operational profitability, safety and reliability as top priorities for the airline.
He also announced plans to introduce a program that rewards employees for ideas that lead to measurable cost savings and improved operational efficiency.
Air India has faced various challenges, including the fatal AI171 crash in June last year that killed 260 people, as well as geopolitical disruptions, airspace closures, fuel price volatility and various operational issues.
Air India’s consolidated loss widened to ₹22,238.23 crore in the fiscal year ending March 2026 from ₹10,858.83 crore in the year-ago period amid headwinds.
At the same time, total revenue fell to ₹71,869.94 crore against ₹78,635.61 crore in 2024-25, according to a regulatory filing. The combined figures include the financials of Air India Express.
Published on October 15, 2026