Air India is looking to improve cost efficiency as the airline works through a difficult period marked by financial losses and operational challenges.
Chairman N Chandrasekaran has asked employees to develop a stronger culture of “cost consciousness”, stressing that every employee can play a role in helping the airline control costs.
“Every individual in Air India can contribute to improving cost efficiency,” Chandrasekaran told employees at an Air India townhall, sources confirmed to India Today.
Addressing employees, Chandrasekaran said the airline’s next phase must focus on four key areas — safety, customer trust, operational execution and cost discipline.
He acknowledged that the past 18 months had been particularly challenging for Air India. The airline faced geopolitical disruptions, airspace closures, changes in fuel prices and the tragic AI171 accident, all of which affected its operations and performance.
Chandrasekaran said the airline now needs to strengthen its processes and improve execution while keeping a close watch on costs.
“Safety is not about what we say. It is about what we do every day,” he said, underlining the need for strong processes, strict compliance and personal accountability across the organisation.
The townhall was also attended by outgoing CEO and MD Campbell Wilson and incoming CEO and MD Tewolde Gebremariam.
Chandrasekaran thanked Wilson for leading Air India through what he described as one of the most important phases in the airline’s history.
He also reminded employees of the unique place Air India holds in the country.
“It is probably the only business that a billion people talk about, have views on, criticise fiercely and appreciate at times,” Chandrasekaran said.
“But one thing we should always remember is that all these one billion people are rooting for Air India. That is our biggest strength,” he added.
The focus on cost efficiency comes as Air India continues to face financial pressure. The airline’s annual loss more than doubled to around Rs 22,238 crore in FY26, from nearly Rs 10,859 crore in FY25, according to Tata Sons’ annual accounts.
The airline is also dealing with the impact of the AI171 crash in Ahmedabad on June 12, 2025. The Air India flight from Ahmedabad to London Gatwick crashed shortly after take-off, killing 260 people, including 229 passengers, 12 crew members and 19 people on the ground.
More recently, Air India came under scrutiny following the August 4, 2026, AI2379 incident, when the Phuket-Delhi flight suddenly lost around 300 feet in altitude, leaving 24 passengers and crew members injured. The Pilot-in-Command subsequently tested positive for a psychoactive substance, following which
These developments have put safety, operational discipline and cost control at the centre of Air India’s next phase.
As Air India moves into its next phase, the focus will remain on improving safety, rebuilding customer trust, strengthening operations and creating greater cost discipline across the organisation.