Air India considers furloughs and bonus delays as West Asia battle fuels report Rs 22,000-crore loss
2 min learnMight 8, 2026 08:53 AM IST
Air India’s board on Thursday reviewed a spread of cost-cutting choices, together with potential furloughs, because the loss-making service grapples with mounting challenges, primarily triggered by the West Asia battle. The assembly was held on the airline’s headquarters in Gurugram, Haryana, and lasted for greater than three hours after starting at round 11.30 AM.
Based on sources information company PTI spoke to, the board mentioned a number of steps aimed toward lowering prices. These measures may embody putting workers on furlough and delaying bonus payouts. At Air India, bonuses are performance-linked and type a part of workers’ total cost-to-company package deal. Furloughs usually contain employees being positioned on short-term unpaid depart during times of monetary stress.
Air India CEO and Managing Director Campbell Wilson is scheduled to deal with workers at a ‘city corridor’ assembly on Friday, Might 8.
Sources had earlier indicated that the airline’s monetary efficiency for 2025-26, cost-reduction methods and the seek for a brand new chief govt had been anticipated to determine prominently within the discussions.
Wilson is ready to step down later this 12 months.
The airline’s operations have been hit by airspace restrictions and rising aviation gas costs stemming from the West Asia battle, including stress at a time when Air India is pursuing a significant transformation programme. The ensuing spike in operational bills has prompted the service to look at a number of cost-control measures.
The Air India board is chaired by Tata Sons Chairman N Chandrasekaran. Different board members embody Wilson, Singapore Airways CEO Goh Choon Phong, Sanjiv Mehta, Alice Vaidyan, PR Ramesh and PB Balaji.
Air India Group, which incorporates Air India and Air India Categorical, is estimated to have posted losses exceeding Rs 22,000 crore for the monetary 12 months ending March 2026, as per PTI.
