Air India CEO Weighs Budget Unit Merger to Reduce Costs

By EC Assets · Published 18 September 2026

Air India's incoming chief executive officer is exploring the merger of its budget unit, Air India Express, with the main group. This potential consolidation aims to reduce operational costs. The basic objective of the merger is to streamline management and lower regulatory requirements. The airline also announced it will become the first in India to offer UATP corporate travel programs. Air India will deploy UATP accounts for businesses and travel agencies. UATP is a global network designed to simplify payment processes and expand payment capabilities for organizations. Separately, a consumer commission ordered Air India Express to refund a fee to a passenger. The airline mishandled the passenger's bicycle despite a special handling payment. The commission found a deficiency in service. In another incident, an Air India A320 flying from Phuket to New Delhi issued a stall warning last month. Seatbelt signs were off at the time. A rapid pitch up and down injured 24 people. Investigators are examining the incident. In other news concerning the airline, that four Air India Express pilots were among eight individuals suspended. The suspensions relate to delayed breathalyzer tests. Crew members were required to undergo a mandatory post-flight declaration within two hours of landing in Amritsar. This article is intended for informational purposes only. It does not constitute investment advice.