The Air India Group is considering merging key corporate functions across Air India and Air India Express, according to a report. Departments such as human resources, finance, IT and engineering could be run by common teams serving both airlines.

The move aims to cut duplication and overheads. For FY26, Air India and Air India Express, along with their joint ventures and subsidiaries, reported combined losses of Rs 22,238 crore on revenue of about Rs 71,870 crore. Air India posted a standalone net loss of Rs 15,368 crore, while Air India Express reported a net loss of Rs 6,767 crore.

Both brands and business models would stay separate under the proposal, sources said. The plan follows a call by new Air India CEO and MD Tewolde Gebremariam for deeper integration across the group. In his first townhall, he listed sustainable profitability as a key goal alongside safety and reliability.

The shared-functions structure could unlock economies of scale, an industry insider said. If implemented, it would mark the next step in the group’s consolidation after the Vistara merger.