Air India CEO Tewolde Gebremariam has established a committee to identify cost-saving opportunities as the airline confronts rising losses, according to livemint.com. The committee is tasked with evaluating options such as merging teams within Air India and its subsidiary Air India Express, as well as relocating office spaces to reduce lease expenses. Gebremariam took charge as CEO and managing director on October 1.
The committee's formation follows Gebremariam's September 28 address to employees, where he emphasized the need for cost discipline to become ingrained in the airline's culture. He highlighted sustainable profitability, safety, and operational reliability as the carrier's main priorities. The CEO also announced plans to incentivize employees who propose ideas that lead to measurable savings and enhance operational efficiency. The airline's board is scheduled to discuss these cost-cutting measures at a meeting on Thursday.
This move comes amid Air India's ongoing financial and operational challenges. The airline is seeking to streamline operations and reduce expenses to improve its financial health. Rationalizing teams and lowering office lease costs are part of broader efforts to enhance efficiency. Gebremariam, who previously worked at Ethiopian Airlines, is the second foreign national to lead Air India, signaling a strategic shift in leadership aimed at turning around the carrier's fortunes.
The board of directors' meeting on Thursday will be a key moment for Air India as it considers the committee's recommendations on cost reductions and operational changes. Gebremariam's leadership since October 1 marks a new phase for the airline, with a focus on embedding cost discipline and rewarding efficiency improvements among employees.