# Air India CEO considers merging Air India Express to cut losses

2026-09-18T14:08:03+00:00 | Governance | Indian Opinion Desk

Corroboration: 3 independent outlets

Air India's incoming CEO Tewolde Gebremariam is exploring merging the budget carrier Air India Express into the main airline group, people familiar with the matter told Bloomberg. The CEO-designate argues that a single airline group would lower regulatory requirements and reduce the need for separate managers, engineers, and administrative staff. Air India Express would retain its brand name in a combined entity, but the idea is at an early stage and requires board approval. The cost-cutting push comes after Air India posted a consolidated loss of Rs 22,000 crore ($2.3 billion) for the year through March 2024, according to the reports. Reducing losses is critical for parent Tata Sons, which faces internal governance debates and regulatory pressures for a potential public listing. Gebremariam, who officially joined this month, still needs regulatory clearance as a foreign national. He also faces challenges including closed Pakistani airspace, the Middle East conflict, and a regulatory probe after a pilot tested positive for drugs.

## Indian Opinion Analysis

All three sources report the same factual core: Gebremariam is exploring an Air India Express merger to cut costs after a record Rs 22,000 crore loss. Economictimes and Livemint lead with his rationale on operational efficiency and regulatory reduction, while Businesstoday front-loads the merger as a cost-control move. None take a critical or pro-government stance, all treat the story as a corporate restructuring update. The coverage is uniform straight reporting. The next steps to watch are the supervisory board's decision and the CEO's pending regulatory approval as a foreign national. All three sources report the same core: Gebremariam is exploring an Air India Express merger to cut costs after a record Rs 22,000 crore loss. Economictimes and Livemint lead with his rationale on operational efficiency and regulatory reduction, while Businesstoday front-loads the merger as a cost-control move.

## Coverage

- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-ceo-tewolde-gebremariam-weighs-folding-budget-arm-ai-express-into-group-to-cut-costs/articleshow/134334623.cms>
  Straight business reporting, no slant, leads with CEO's cost-cut rationale
- livemint.com (neutral report) <https://www.livemint.com/companies/news/air-india-express-merger-new-ceo-tewolde-gebremariam-11789734819396.html>
  Straight business reporting, identical content to Source 1
- businesstoday.in (neutral report) <https://www.businesstoday.in/india/story/air-indias-incoming-ceo-weighs-merging-budget-arm-ai-express-to-rein-in-swelling-costs-report-556574-2026-09-18?utm_source=rssfeed>
  Business reporting, frames merger primarily as cost control

Tags: Air India, Air India Express, Singapore Airlines, Tata Sons, Tewolde Gebremariam
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