Tewolde Gebremariam, the incoming CEO of Air India, is examining the possibility of consolidating the airline’s operations by merging its no-frills subsidiary, Air India Express, into the group. This move aims to streamline management, lower regulatory compliance requirements, and eliminate duplicate functions such as engineering and administrative staff. The discussions are still in early stages, and approval from the supervisory board would be necessary.
According to sources, Tewolde has encouraged departmental managers to evaluate the need for maintaining two separate airline permits, emphasizing that a unified airline could result in significant cost savings and operational efficiencies. The plan would retain the Air India Express brand within the merged entity.
Focus on Cost-Cutting and Operational Efficiency
The deliberation reflects Tewolde's focus on cutting costs amid the airline’s record losses, with an aim to make the group more efficient and competitive. An official statement from Air India has not been provided, as the idea remains under review.
This strategic review is part of broader industry efforts to optimize airline structures and improve financial viability through operational integration and regulatory simplification.
