Air India weighs folding Air India Express into main group

Air India is examining whether to fold Air India Express into the main airline group as part of a cost-cutting drive that could simplify the carrier’s structure and reduce duplication. The proposed change would keep the Air India Express brand but merge it more closely with the parent company, easing separate management and operating arrangements within the India-based group.

The discussion remains at an early stage and would require approval from Air India’s supervisory board. It comes as the airline continues to tackle heavy losses and questions the need to run two carriers with separate operating permits. Combining the businesses could trim regulatory complexity and remove overlapping work in management, engineering and administration.

The plan would be a further step in the Tata Group’s overhaul of Air India after its acquisition of the airline in 2022. Air India and Air India Express currently operate as separate entities, and any consolidation would affect the group’s licensing, labour structure and network integration.