Air India Eyes Former Garuda CFO Balagopal Kunduvara for Finance Role

Air India Ltd. is reportedly in talks to appoint Balagopal Kunduvara as its next chief financial officer. The airline is looking to leverage Kunduvara’s extensive experience to steer its finances back on track following a significant financial setback in the previous fiscal year.

Sources familiar with the discussions, speaking on condition of anonymity, identified Kunduvara as the leading candidate for the CFO position. He recently stepped down from his role as finance chief at Garuda Indonesia, where he served for a little over a year. Before joining Garuda, Kunduvara spent more than twenty years at Singapore Airlines, a company that holds a partial stake in Air India alongside the Tata Group, Air India’s majority owner.

Air India is currently seeking additional capital injection, with reports suggesting that it aims to secure ₹10,000 crore (approximately $1.1 billion) from its owners to support its ongoing revival efforts. An official spokesperson for Air India did not provide immediate comments regarding the potential CFO appointment.

The Indian carrier is undergoing a major turnaround initiative under the leadership of CEO Tewolde Gebremariam, who took charge recently. Last fiscal year, Air India registered a loss exceeding ₹22,000 crore, underscoring the urgency of financial restructuring. Tewolde has emphasized prioritizing cost-cutting measures as a key part of the recovery plan.

In a LinkedIn announcement, Kunduvara confirmed his exit from Garuda Indonesia, noting that although his tenure was brief, it coincided with a critical phase in Garuda’s transformation strategy. Garuda’s representatives have confirmed his departure from the company.

Kunduvara’s appointment comes at a challenging time for Air India. The airline faces elevated fuel expenses partly due to ongoing conflict in Iran. Additionally, geopolitical tensions have impacted its operations, including reduced air traffic to the Middle East and restrictions on flying over Pakistani airspace. These limitations compel westbound flights from Air India’s primary hub in New Delhi to take longer, indirect routes, increasing costs and travel time.

CEO Tewolde, who previously led Ethiopian Airlines Group, is actively working to improve Air India’s cargo division, which has underperformed relative to competitors. He is also focused on streamlining operations by integrating departments between Air India and its low-cost subsidiary, Air India Express, aiming to enhance efficiency and reduce expenses.

Furthermore, Tewolde is evaluating the possibility of rerouting more transcontinental flights bound for Europe and the United States through Mumbai instead of Delhi. This strategy seeks to avoid Pakistani airspace closures and minimize operational disruptions.

Air India’s pursuit of an experienced financial leader like Kunduvara signals its commitment to stabilizing its financial position and adapting to the complex challenges affecting the aviation sector in the region. The move also aligns with broader industry trends where airlines focus on cost optimization, route management, and cargo expansion to regain profitability after the pandemic and geopolitical upheavals.