Air India CEO-designate Tewolde Gebremariam is considering combining Air India Express with Air India as part of an effort to reduce costs and streamline the airline group’s operations.

According to people familiar with the discussions, Gebremariam has questioned the need to operate two airlines with separate operating permits. A unified structure could reduce duplication across management, engineering and administrative functions.

The proposal remains at an early stage and would require approval from Air India’s supervisory board. If implemented, Air India Express is expected to retain its brand identity.

The move comes as Air India works to address significant financial and operational challenges. The airline reported a loss of about ₹22,000 crore for the year ended March, increasing pressure to improve efficiency across the group.

Gebremariam, who officially joined Air India this month, is also reviewing areas including aircraft maintenance and cargo operations. His appointment still requires regulatory approval because he is a foreign national.

Air India has undergone major restructuring since the Tata Group acquired it in 2022. The group consolidated several aviation businesses into the current Air India and Air India Express structure.

A merger could represent another significant step in Tata Group’s effort to simplify its airline operations and reduce overlapping costs.