Full Breakdown
Air India Rolls Out Full-Time Cost-Savings Team as New CEO Tackles Deepening Losses
By Drooid · · How we work
Core Action: Launch of a Multidisciplinary Cost-Savings Team
Tata Group-owned Air India has created a full-time, cross-functional Cost Savings Team to review expenditure and pinpoint savings across the airline’s functions.
Background: A Transforming Carrier Under Financial Pressure
Air India’s recent transformation, begun under former CEO Campbell Wilson, delivered a new brand identity, consolidation of its group airlines, expanded network synergies, large aircraft orders, cabin modernisations, technology upgrades and recruitment for key operational roles. The carrier posted a consolidated loss of over Rs 22,000 crore in FY 2025-26—more than double the loss recorded in the preceding year. To shore up its balance sheet, the airline is seeking roughly $1.5 billion from shareholders Tata Sons and Singapore Airlines.
Key Initiatives and Operational Changes
- PRABHAV – The Value Creator Award – An employee-driven program inviting ideas on cost reduction, utilisation, contract optimisation, insourcing, efficient procurement, waste reduction and revenue-maximising opportunities. Successful proposals will be recognised and rewarded.
- Revised Staff-On-Duty (SOD) Approval Matrix – Effective October 1, travel approvals now pass through the head of department, chief experience officer and the CEO to tighten rigour and transparency.
- Integration with Air India Express – The CEO is pursuing deeper operational synergy between the full-service carrier and its low-cost subsidiary, including deduplication of administrative functions and shared support teams.
External Headwinds Amplifying Cost Concerns
Gebremariam highlighted persistent challenges beyond the airline’s control: ongoing airspace closures, the West Asia conflict and its resulting operational disruptions, and persistently high jet-fuel prices.
Official Statements & Responses
- Air India Express Winter Schedule – The subsidiary announced its 2026-27 winter schedule, effective October 25, expanding its network to nearly 585 daily flights across 220 routes and 65 stations, supported by a fleet of more than 105 aircraft.
Verbatim Quotes
- “They (cost savings team) will systematically review all expenditure and identify cost-saving opportunities across functions. Please extend your full support and cooperation to the team as they undertake this important effort to help deliver cost efficiencies across the organisation,” — Tewolde Gebremariam, the new CEO
Data & Statistics
| Metric | Figure | Source |
|---|---|---|
| FY 2025-26 consolidated loss | > Rs 22,000 crore | Airline report |
| Shareholder funding sought | ? $1.5 billion | Internal sources |
| Air India Express winter network | ~585 daily flights, 220 routes, 65 stations | Airline announcement |
| Air India Express fleet | > 105 aircraft | Airline announcement |
Why It Matters
Embedding a cost-conscious culture aims to curb the airline’s widening deficits while preserving its growth agenda. By mobilising employees through PRABHAV and tightening approval processes, Air India hopes to generate savings that can be redirected toward operational upgrades, technology investments and service improvements—critical for competing in a market strained by fuel price volatility and geopolitical disruptions.
What’s Next
- Implementation of PRABHAV – Details of the idea-submission process will be shared with staff in the coming weeks.
- Monitoring of Savings – The Cost Savings Team will report progress to senior leadership, with periodic updates expected as the airline evaluates the impact of revised SOD approvals and integration measures.
The combined focus on disciplined spending, employee engagement and strategic integration reflects Air India’s effort to stabilise its finances while continuing the broader transformation initiated under its previous leadership.
