Air India CEO Considers Merging Budget Unit to Cut Costs

Tewolde Gebremariam, the incoming Chief Executive Officer of Air India Ltd., is considering merging the budget carrier Air India Express into the main airline group. The proposed restructuring aims to counter record losses by streamlining operations and reducing overhead.

Gebremariam has conducted meetings across various departments to determine if maintaining two distinct airline companies is necessary. He argues that consolidating the entities into a single airline group would lower regulatory requirements by eliminating the need for two separate operating permits.

The move would target the reduction of redundant administrative, engineering, and management staff. By folding the no-frills unit into the parent group, the company seeks to lower its overall operational costs and simplify its corporate structure.