Air India CEO weighs Air India Express merger to curb losses

Incoming Air India CEO Tewolde Gebremariam is considering folding Air India Express into the parent airline to reduce duplicate regulatory, staffing and administrative costs after Air India posted an annual loss of about ₹22,000 crore.

— Source publishedFri, 18 Sept, 2026, 18:21 IST·First seen Fri, 18 Sept, 2026, 18:27 IST·Source Mint · Companies

What happened

Incoming Air India CEO Tewolde Gebremariam is weighing folding Air India Express into the group to cut duplicate regulatory, staffing and administrative costs

Key facts

  • ₹22,000 crore loss
  • $2.3 billion loss
  • 61-year-old CEO-designate
  • 2022 Tata Group acquisition
  • 2007 Indian Airlines merger

Why this matters

Folding Air India Express into the parent would be a major portfolio-rationalization move, creating integration opportunities but requiring careful assessment of regulatory, labor and brand risks.

What to watch

  • Formal board approval, CEO statement or Tata Group filing describing a merger, amalgamation or single-airline structure.
  • Appointment of merger advisers and submission of a scheme to Indian aviation or corporate regulators.
  • Announcements on Air India Express branding, operating certificate retention or integration of booking and loyalty platforms.
  • Workforce consultation, voluntary separation plans, management-layer reductions or unified labor policies.
  • Route withdrawals, schedule consolidation or aircraft transfers between Air India and Air India Express.
  • Reported synergy target, loss-reduction guidance or improvement in consolidated operating margins.
  • Commission a cost-synergy and legal-structure review covering Air India Express, Air India and remaining Tata aviation entities.
  • Centralize overlapping corporate functions, procurement, technology, revenue management and maintenance planning before any legal combination.
  • Rationalize overlapping domestic and Gulf routes, reallocating capacity toward higher-yield international feed and underserved domestic markets.
  • Review brand architecture to determine whether Air India Express remains a distinct value brand under a common operating platform.
  • Engage regulators, employee groups, lessors and airport partners on certificate, staffing, slot and fleet-transition implications.

Also reported by