New Delhi: Air India's board of directors on Thursday discussed various cost-saving measures, including likely furloughs, amid the loss-making airline facing multiple headwinds, largely due to the West Asia conflict.The board meeting took place at Air India's headquarters in Gurugram, Haryana.
The meeting started at around 11.30 am and went on for over three hours. Cost-saving measures were among the topics discussed at the meeting, according to sources.
Follow The PSUWatch Channel on WhatsApp
The measures could include furloughs and deferred payment of bonuses, they added. Bonuses, which are performance-linked, are part of CTC (Cost To Company) at Air India.
Generally, furlough refers to sending staff on unpaid leaves by companies during a tough financial situation.
Meanwhile, Air India CEO and MD Campbell Wilson will be addressing a townhall on Friday.
Earlier, sources had said the airline's financials for 2025-26, cost-saving measures and selection of a new CEO were expected to be discussed at the meeting.
Wilson will be stepping down later this year.
Airspace curbs and higher jet fuel prices due to the West Asia conflict are adversely impacting the airline, which is in the midst of an ambitious transformation plan. Operational costs have gone up significantly in recent months for the carrier.
Against this backdrop, the airline is mulling various cost-saving measures.
The Air India board is chaired by Tata Sons Chairman N Chandrasekaran.
Follow PSU Watch on LinkedIN
Wilson, Singapore Airlines CEO Goh Choon Phong, Sanjiv Mehta, Alice Vaidyan, PR Ramesh, and PB Balaji are members of the board.
Air India Group -- Air India and Air India Express -- is projected to have incurred more than Rs 22,000 crore loss in the financial year ended March 2026.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)