NEW DELHI: Air India MD and CEO Tewolde Gebremariam has set up a “multidisciplinary, cross-functional cost savings team” to find all possible ways and means of reducing expenditure on “full-time basis” amid mounting losses. Air India reported a loss of about $2.3 billion in 2025-26, the biggest annual loss since the Tata Group acquired the airline along with AI Express in Jan 2022. Overall, since then the airline has lost about $5.7 billion due to a combination of both internal and external factors.“While many external factors remain beyond our control, how we manage costs is something each of us can influence every day. Cost saving… requires active participation and commitment of every employee… Alongside operational excellence, we need to embed a mindset of frugality, accountability, and thoughtful decision-making in everything we do. We should continually challenge ourselves to ask – is this expenditure necessary? Is there a more efficient way to achieve the same outcome? Small decisions, taken consistently across organisation, can collectively strengthen financial resilience,” said Tewolde.While airlines globally have been facing elevated oil prices since the West Asia crisis along with other geopolitical challenges, Indian carriers have been worse off due to the rupee crashing and Pakistan airspace closure only for them. For Air India, the situation is even worse post the deadly Ahmedabad crash last June.“…a multidisciplinary, cross-functional cost saving team has been established on full-time basis to identify cost-saving opportunities across the organisation. They will systematically review all expenditure and identify cost-saving opportunities across functions,” his memo says.
