In October 2026, Air India’s chief executive, Tewolde Gebremariam, signalled a shift in tone for the carrier. He said that cost consciousness must become part of the airline’s culture, a statement that framed the upcoming initiatives as more than a temporary fix. By linking everyday behaviour to financial health, the CEO set the expectation that every employee would need to think about expenses in their daily work.
On 15 October 2026, the airline announced the formation of a multidisciplinary, cross‑functional Cost Savings Team. The team was established on a full‑time basis and tasked with identifying cost‑saving opportunities across the organisation. Its creation reflected the view that a focused group could scan operations for inefficiencies while still needing input from elsewhere.
Also on 15 October 2026, Air India launched the ‘PRABHAV – The Value Creator Award’. The initiative was designed to encourage staff to submit ideas that could reduce expenses. By recognising contributors, the airline hoped to tap into the collective ingenuity of its workforce and make cost saving a visible, rewarded activity.
The goal of these organisational changes was to eliminate duplication and streamline processes, thereby contributing to the broader cost‑reduction effort.
Following the announcement on 12 October 2026, the airline began tightening spending approvals. This meant that any expenditure would face stricter scrutiny before being authorised. The move was presented as a direct response to mounting losses and rising operating costs, signalling that financial discipline would be applied at the point of decision‑making.
In parallel with the new team and award, Air India indicated that it would merge certain departments. The goal of these organisational changes was to eliminate duplication and streamline processes, thereby contributing to the broader cost‑reduction effort.
Tewolde Gebremariam repeated a core message: cost savings cannot be driven by a single team or function alone. He stressed that achieving meaningful reductions requires the active participation and commitment of every employee. This emphasis on organisation‑wide involvement was meant to prevent the initiative from being seen as a top‑down mandate that excluded the bulk of the staff.
The airline’s cost‑saving push came amid high jet fuel prices and the ongoing West Asia crisis, both of which were cited as external pressures squeezing Air India’s margins.
Air India’s leadership described the airline as grappling with mounting losses and rising operating costs. This financial backdrop justified the series of measures introduced in October 2026, from the cost‑saving team to the employee award and tighter approvals. The airline framed the steps as necessary to move from a phase of rebuilding toward profitable and sustainable growth.
By combining a dedicated team, an employee‑recognition scheme, stricter spending controls, departmental mergers and a repeated call for collective action, Air India sought to embed cost consciousness into its everyday operations. The initiatives were presented as interconnected parts of a single strategy rather than isolated projects.
As of the October 2026 announcements, Air India had laid out a framework intended to curb expenses and improve financial resilience. The carrier’s next steps will depend on how effectively the cost‑saving team identifies opportunities, how many employees engage with the PRABHAV award, and whether the tightened approvals and departmental mergers yield the anticipated savings without compromising service quality.