Air India has set up a full-time, cross-functional team to review spending across the organisation and has tightened approval rules, CEO and Managing Director Tewolde Gebremariam told employees in an internal message dated October 12, 2026. The Tata Group-owned airline is also launching an employee award, PRABHAV: The Value Creator Award, to reward staff whose cost-saving or revenue ideas are put into practice.
Gebremariam, a veteran of Ethiopian Airlines, took charge as CEO and MD on October 1, succeeding Campbell Wilson.
“Every rupee saved creates an opportunity to reinvest in areas that matter most, including operations and customer experience.”
Tewolde Gebremariam, CEO and Managing Director, Air India (as quoted by PTI)
What employees are being asked to do
Gebremariam said cost reduction can’t be driven by a single team and needs participation across the organisation.
“Alongside operational excellence, we need to embed a mindset of frugality, accountability, and thoughtful decision-making in everything that we do.”
Tewolde Gebremariam (as quoted by PTI)
Under PRABHAV, employees can submit ideas in these areas:
- Improving resource utilisation and streamlining processes
- Renegotiating contracts and improving procurement of goods and services
- Bringing outsourced activities in-house
- Reducing waste and questioning existing practices
- Generating additional revenue from existing products, services and capabilities
Employees whose ideas are implemented will be rewarded.
Tighter approvals
Air India has revised its approval matrix with effect from October 1. According to PTI, approvals for Staff On Duty (SOD) travel are now routed through the head of department, the CXO and the CEO. The message said the change is meant to bring more scrutiny and transparency to spending decisions.
The airline hasn’t recorded a profit since it returned to private ownership in January 2022. It’s jointly owned by the Tata Group and Singapore Airlines.
Gebremariam pointed to high jet fuel prices, airspace closures and the conflict in West Asia as pressures on airlines across the industry. Airspace restrictions have forced longer routes, cancellations and cuts to international services, Reuters reported. The airline also faces regulatory scrutiny on safety and compliance after the June 2025 crash that killed 260 people, according to Reuters.
Reuters reported in August that Air India was seeking about $1.5 billion in additional equity from its shareholders.
Integration under ‘One Air India’
The cost team sits within the airline’s ‘One Air India’ integration plan. Separately, Bloomberg has reported that Gebremariam is considering bringing Air India Express under Air India’s operating structure as part of the cost drive. The proposal is at a preliminary stage and would need board approval. Air India and Air India Express had already merged their sales teams into a single global structure in 2025.
