Air India board to meet on May 7: CEO hunt, cost cuts likely on agenda 

Air India is set for a crucial board meeting on May 7 where cost-saving measures, leadership transition, and financial performance will take centre stage. The airline, owned by the Tata Group, is projected to have incurred losses exceeding Rs 22,000 crore in FY26, with recent geopolitical developments compounding its challenges. 

According to a PTI report, the Board chaired by N Chandrasekaran, will meet in Mumbai to review financials for 2025-26, deliberate on cost-control strategies, and discuss succession plans for the next CEO. The airline is actively scouting for a replacement as incumbent CEO Campbell Wilson is set to step down later this year. 

The airline is also evaluating operational changes to curb rising costs. Among the proposals under consideration is the unbundling of services such as meals and lounge access. This would allow passengers to opt for lower fares without meals, while business class travellers may be given the choice to pay separately for lounge access, the PTI reported citing sources. However, sources clarified that these measures are still under discussion and no final decision has been taken. 

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Air India’s cost pressures have intensified due to the ongoing West Asia conflict, which has forced longer flight routes because of airspace restrictions, leading to higher fuel consumption. The situation has further strained the airline’s finances amid already elevated aviation turbine fuel prices. 

The board is also expected to discuss potential candidates for the top leadership role. Names from within Air India, Singapore Airlines — which holds a 25.1% stake — and even European aviation circles are being considered. One source indicated that a joint MD or CEO structure could also be explored. 

Apart from Chandrasekaran and Wilson, the board includes Singapore Airlines CEO Goh Choon Phong, along with Sanjiv Mehta, Alice Vaidyan, P R Ramesh, and P B Balaji. 

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Highlighting the severity of the situation, Wilson recently told staff that operational conditions remain extremely challenging. “… massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate,” he said. 

The airline has already reduced international flights in April and May and plans further cuts. “but to further trim schedules for June and July”. He added, “We very much regret the disruption to our customers’ plans and our crew’s rosters, and hope that the Middle East situation settles — and the Strait of Hormuz opens — soon so that we can get back to a more normal state.” 

Domestic operations, while relatively less impacted, are also under pressure. “To partially compensate for the huge spike in costs, we have increased airfares and imposed fuel surcharges but, understandably, these higher airfares impact customer demand, so we can only raise fares so far before people decide to stay home,” Wilson said. 

The stress is not limited to Air India. On April 26, Air India, IndiGo, and SpiceJet flagged to the government that the aviation sector is under extreme strain and nearing a point of “stopping operations”, seeking relief on fuel pricing and financial support. Fuel costs continue to climb, with international jet fuel prices rising by over 5% on May 1.