Air India board meeting on May 7: What's the agenda?
What's the story
Air India's board of directors will convene on May 7 in Mumbai. The meeting will be chaired by Tata Sons chairman N Chandrasekaran. The agenda is likely to include cost-cutting measures, the selection of a new CEO, and financial discussions for the fiscal year 2025-26. This comes as Air India continues to grapple with challenges stemming from the West Asia conflict and rising operational costs.
Financial woes
Air India's expected losses for FY26
The ongoing West Asia conflict has further complicated matters for the Air India Group, which is expected to have posted losses of over ₹22,000 crore in the fiscal year ending March 2026. The airline's financial troubles have been compounded by rising jet fuel prices and airspace restrictions due to the conflict. These factors have forced Air India to take longer routes for international destinations, resulting in higher fuel consumption and costs.
Cost-cutting measures
Unbundling meals and lounge access from ticket prices
In a bid to save costs amid rising jet fuel prices, Air India is considering unbundling meals and lounge access from ticket prices. The move would allow the airline to offer a fare category where passengers can choose not to have meals. However, these plans are still under consideration, and no final decision has been made yet.
Leadership change
New CEO search underway
As part of its transformation plan, Tata Group-owned Air India is also looking for a new CEO. Current CEO Campbell Wilson, who has been with the company, will be stepping down later this year. Several names are being considered for the position, including those from Air India and Singapore Airlines, as well as potential European candidates.
Government appeal
Indian airlines seek government intervention amid crisis
On April 26, Air India, IndiGo, and SpiceJet told the government that the country's airline industry is under extreme stress and on the verge of "stopping operations." They sought a revision in jet fuel pricing and financial support. This comes as global airlines are also facing tough times due to the West Asia turmoil, with many resorting to cost-cutting measures.