Air India is set to implement a new travel policy requiring its top executives, senior pilots, and other staff members to fly economy class on domestic routes starting April 1, 2025. The Tata Group-owned airline’s move is aimed at optimizing operational costs and prioritizing revenue-generating passengers in premium cabins.
According to the revised policy, Air India’s CEO, senior management, and other employees will be required to book economy-class tickets for domestic flights. The rule will also apply to senior pilots from June 2025. However, employees will be allowed to upgrade to premium economy or business class only if these seats remain unsold 50 minutes before departure. This ensures that paying customers receive priority access to premium seating, maximizing revenue potential for the airline.
The decision aligns with Air India’s broader restructuring efforts under the Tata Group, which has been focused on financial discipline, operational efficiency, and improved service quality. By restricting premium class travel for employees, the airline aims to enhance profitability while maintaining fairness in seat allocation.
Air India has been undergoing significant transformation since its acquisition by Tata Group, including a fleet modernization program, service enhancements, and a renewed focus on customer experience. This latest move reflects the company’s commitment to cost efficiency while ensuring that premium seating remains available for paying passengers.
Industry experts view this policy as a strategic decision that could set a precedent for other airlines looking to optimize seat utilization and reduce operational expenses. As Air India continues its ambitious turnaround plan, such measures are expected to play a crucial role in shaping the airline’s future in an increasingly competitive aviation market.