Bangladesh, Sept. 19 -- Air India's incoming Chief Executive Officer Tewolde Gebremariam is reportedly considering merging the airline's low-cost arm, Air India Express, into the parent group as part of a broader cost-cutting push amid record losses.

According to people familiar with the matter who requested anonymity, Tewolde has questioned department managers in multiple internal meetings about the rationale for operating two separate airlines with distinct operating permits.

The CEO-designate reportedly believes a single airline group would ease regulatory burdens and cut down on the need for duplicate management, engineering, and administrative teams across both carriers.

The merger idea remains in early discussion stages and would...