Air India, in which Singapore Airlines holds a 25.1 percent stake and the Tata Group owns the majority 74.9 percent, is contemplating a series of cost-saving measures as it faces mounting challenges amid geopolitical conflicts and financial losses. The airline is considering furloughing employees, reducing flight capacity by over 20 percent for the upcoming three months, and lowering bonuses and salaries for senior executives. These steps come after the airline reported a record annual loss exceeding 220 billion rupees (approximately S$2.95 billion).
The company is also actively seeking a new chief executive officer following the resignation of Campbell Wilson in April. Singapore Airlines has deepened its operational involvement with Air India, aiming to stabilize the crisis-hit carrier. The airline's difficulties are compounded by a series of incidents, including a fatal crash in 2025, airspace closures related to border disputes, and broader industry impacts due to ongoing conflicts in Iran and with Pakistan.
These measures reflect the urgent need to curb expenses and adapt to the challenging environment that has severely impacted airline operations and profitability in India. Industry analysts suggest that these strategic adjustments are critical for Air India's recovery and future stability, with support from international stakeholders such as Singapore Airlines invaluable during this period.
