The Air India board will review staff travel policies and cost-saving proposals at a meeting on October 15. Sources said these measures reflect a new cost-conscious culture. "These proposals, including the SoD policy, come under the new 'cost-conscious' culture that is being imbibed in the company," sources told businessline.
To rein in spending, Tata Group-promoted Air India's board is expected to consider several cost-saving measures, including a review of its staff on duty (SoD) policy, sources told businessline.
These proposals are expected to be taken up at the airline's board meeting scheduled for October 15.
The SoD policy covers employees travelling on official duty.
"These proposals, including the SoD policy, come under the new 'cost-conscious' culture that is being imbibed in the company," sources told businessline.
"Specifically, the board is expected to take up the proposed new criteria for implementing the SoD policy, whereby strict guidelines would be followed to assess the need for employees' travel."
Earlier, Air India had revised its staff travel arrangements from April 1, 2025, requiring employees, including senior management, to travel in economy.
Notably, upgrades to premium economy or business class were permitted only if seats remained unsold 50 minutes before departure, prioritising availability for paying passengers.
Besides, sources said the airline is considering rightsizing some of its backend departments, including information technology (IT), which currently operates out of Kochi.
A proposal to shift the department's campus from Kochi to Delhi will also be placed before the board, sources said.
The measures, sources said, remain at the proposal stage, with a final decision yet to be taken.
On its part, Air India did not respond to emailed queries.
However, a senior Air India official, on condition of anonymity, told businessline that some cost-saving proposals under the company's 'cost awareness' programme are expected to be reviewed by the board.
Besides, he dismissed the possibility of rightsizing or shifting the location of any department.
Meanwhile, the proposed spending review comes amid a broader push for cost savings and consolidation across the Air India Group.
As reported earlier by businessline, the group is examining a proposal to integrate selected departments of Air India and Air India Express (AIX) through common teams to reduce duplication, improve resource utilisation and achieve economies of scale.
These discussions, according to sources, cover human resources and finance, amongst others.
If approved, the proposed functional integration could take about six months to implement.
At present, marketing has already been integrated as part of the group's commercial functions.
Proposed arrangement
The airlines also have shared leadership across network planning, sales and distribution, and revenue management.
The proposed arrangement would retain the airlines' distinct identities and product offerings.
Unlike the earlier mergers involving Vistara in 2024 and Indian Airlines in 2007, the proposal is limited to integrating selected functional departments.
Consequently, Air India would continue with its full-service positioning, while AIX would retain its low-cost model.
The discussions come against the backdrop of substantial losses. In FY26, Air India and AIX, along with their joint ventures and subsidiaries, reported combined losses of ₹22,238 crore on revenue of about ₹71,870 crore.
On a standalone basis, Air India reported a net loss of ₹15,368 crore, while AIX recorded a net loss of ₹6,767 crore.
Recently, Air India's Chief Executive Officer and Managing Director Tewolde Gebremariam, in his first townhall address to employees, called for closer integration across the Group.
He emphasised that the airlines already belonged to one Air India Group and that operations would be streamlined and synergies pursued wherever possible, while retaining a focus on customers.