Air India CEO Launches Cost-Cutting Drive to Curb Losses

Air India CEO Tewolde Gebremariam has launched a cost-cutting initiative to reduce soaring maintenance expenditures for the airline's Airbus A350 fleet. The drive specifically targets the Trent XWB engines manufactured by Rolls-Royce Holdings Plc, which have incurred operating and servicing costs exceeding original projections.

To lower these expenses, the airline has entered preliminary negotiations with service providers, including Airbus Flight Hour Services and the Rolls-Royce TotalCare programme. This financial tightening follows a record annual loss of over 220 billion rupees, or approximately $2.3 billion.

As part of a broader effort to stabilize financial performance, the airline is seeking 100 billion rupees in fresh capital from its shareholders, Tata Sons Pvt. and Singapore Airlines Ltd. Gebremariam is also focusing on increasing cargo capacity utilization and exploring the integration of Air India Express into the main group to streamline operations.