Air India’s total accumulated losses at the end of FY23 are reportedly pegged to be at Rs 14,000 crore. The accumulated losses include write-offs on old aircraft and engines.
Tata Sons had invested an estimated Rs 13,000 crore in Air India in FY23 through its wholly-owned subsidiary Talace, according to a report in The Economic Times that quoted sources for these estimates. This excludes the investment committed for the 470 new aircraft from Airbus and Boeing that were ordered in June. The company also invested for a design revamp and upgraded services, the report added.
An impairment cost of around Rs 5,000 crore is estimated due to Air India’s aging planes and engines, as well as Rs 1,500 crore against AirAsia India.
The report cited industry sources to quote an estimated $30 billion for the total order value of the new planes. Payment will be made in parts over the years.
Tata Sons Chairman N Chandrasekaran mandated that customer centricity and safety should be prioritised over profit even as the airline focuses on cutting operational losses.
03/08/2023 Business Today
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