- Air India considers merging Air India Express into flagship carrier
- Proposal aims to cut operational costs
- Airline reported combined net loss of ₹22,238 crore
- Tewolde Gebremariam appointed CEO on 5 August 2026
- Air India Express expected to keep distinct brand name
Air India’s incoming CEO-designate Tewolde Gebremariam is considering a proposal to merge the group’s low-cost carrier subsidiary Air India Express into its flagship carrier Air India. The internal discussions are aimed at aggressively cutting operational costs after the airline reported a combined net loss of ₹22,238 crore ($2.3bn or €1.96bn) for the financial year ending March 2026. The proposal aims to reduce duplicate roles by operating as a single unified airline which would eliminate overlapping management, engineering and administrative teams.
Moving under a common operating permit would lower the group’s regulatory burdens and licensing requirements. If the proposal proceeds and gains approval Air India Express is expected to keep its distinct customer-facing brand name. The plan is currently under preliminary review and will require formal approval from Air India’s supervisory board.
This development comes shortly after the Tata Group consolidated its aviation business from four brands into two which included integrating Vistara into Air India and AirAsia India into Air India Express. Tewolde Gebremariam was appointed as the Chief Executive Officer and Managing Director of Air India on 5 August 2026. He previously served as Group CEO of Ethiopian Airlines and succeeds Campbell Wilson.
