In an earlier game, Indian Navy led 4-2 against Western Railway, before the latter pulled off a 4-all draw in Pool C.
Ebullient centre forward Joga Singh notched up a brace of goals for Air India, who led 2-1 at half time before pumping in three more goals within fifteen minutes of resumption to put the issue beyond CAG.
AI, who are runners-up in the Mumbai Super League, got their other goals - all field efforts - via ex-India players Birendra Lakra, Sameer Dad and Vikram Pillay.
CAG can still make the quarter finals having beaten Rashtriya Chemicals and Fertilisers in their opening game.
AI ran roughshod over their rivals with their speedy thrusts and better co-ordination.
Joga gave them the lead in the 5th minute with an angular shot off a diagonal pass from Nirmal Chinappa that came to him off the goalkeeper's pads.
AI were surprised when CAG drew level in the 30th minute when Naeemuddin scored off a centre from the right. But the airmen took the lead again a minute before the interval when a free Lakra sounded the board from the top of the circle.
Pillay completed the rout five minutes later with another field effort.
In the other game Navy, with goals from Jugraj Singh, Rana Pratap and Nitesh (2) led 4-2 before Railways drew level by notching up goals in the last five minutes through Amit Rohidas and Rajin Kandula.
For Western, who led 2-1, Chinglensana Singh and Kandula scored the first two goals.