New Delhi: The board of Air India is scheduled to meet on May 7 to deliberate on key strategic issues, including financial performance, cost-saving measures and the selection of a new chief executive officer, sources said.
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The meeting comes at a time when the Tata Group-owned carrier is grappling with multiple operational and financial headwinds, including a sharp rise in jet fuel costs and disruptions caused by the ongoing West Asia conflict.
According to sources, the board is expected to review the airline’s financials for 2025–26, assess ongoing cost rationalisation efforts and discuss CEO succession plans, although the detailed agenda could not be independently confirmed.
The airline is currently in the midst of a multi-year transformation programme and is scouting for a successor to incumbent CEO Campbell Wilson, who is set to step down later this year. The board is chaired by N Chandrasekaran and includes senior industry leaders such as Goh Choon Phong, Sanjiv Mehta, Alice Vaidyan, P R Ramesh and P B Balaji.
The airline has been facing operational challenges due to airspace restrictions linked to the West Asia conflict, forcing it to take longer routes on several international sectors, thereby increasing fuel consumption and operating costs.
As part of its cost-control strategy, Air India is evaluating measures such as unbundling in-flight meals from ticket pricing and making lounge access optional for business class passengers. These steps are aimed at offering flexible fare options while managing escalating input costs.
In an internal communication earlier this month, Wilson highlighted that rising jet fuel prices, coupled with airspace closures and extended flight durations, have rendered several international routes unviable. The airline has already reduced international capacity in April and May and is expected to further trim schedules for June and July.
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While domestic operations have also been impacted, the effect has been relatively moderated due to caps on fuel price increases. The airline has partially offset rising costs through fare hikes and fuel surcharges, though higher ticket prices have weighed on passenger demand.
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