Thursday, August 03, 2023

Air India Loss: Tata Group air carrier’s total losses estimated at Rs14,000 cr at FY23 end

Tata Group-owned air carrier Air India is expected to post a loss of Rs 14,000 crore as of end-FY23, which includes write-offs on old jets and engines.

The salt-to-cars conglomerate infused Rs 13,000 crore in Air India in FY23. The funds were injected through Talace, the Tata Group holding company for its aviation businesses.

The conglomerate acquired Air India from the Indian government in 2022.

Under its new CEO Campbell Wilson, the airline has introduced a 5-year transformation plan titled Vihaan.AI and placed a record order of 470 jets with Airbus and Boeing combined.

The airline is also scheduled to unveil its new logo and livery this month.

At the end of FY23, the airline is estimated to have incurred an impairment cost of Rs 5,000 crore arising out of old jets, the Economic Times reported.

Air India’s 470-jet order is valued at $30 billion. The company plans to pay this amount in instalments.

The airline is expected to prioritise customer centricity over profits, the ET reported, citing Tata Sons Chairman N Chandrasekaran.

03/08/2023  News9Live

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