‘Cost saving top on agenda’; Tewolde signals deeper AI–Air India Express integration

Cost cutting and deeper integration between Air India (AI) and its low-cost arm Air India Express will be at the centre of CEO-designate Tewolde Gebremariam’s agenda, with the new AI chief calling for shared services, greater asset utilisation and an organisation-wide focus on reducing duplication and improving efficiency.

In his first town hall with employees, Mr. Gebremariam said Air India and Air India Express should operate as “multiple brands with a single unit of production”, with the two airlines retaining distinct customer-facing identities while sharing resources wherever possible, sources privy to the townhall discussion said

While Air India will continue as a full-service carrier and Air India Express as a low-cost carrier, he said customer-facing functions would remain separate, while areas such as IT, human resources, finance and engineering could be streamlined and shared.