Air India is expected to post a loss of INR 140bn as of end-FY23, which includes write-offs on old jets and engines. Tata Sons had invested an estimated INR 130bn in Air India in FY23 through its wholly-owned subsidiary Talace, according to the Economic Times report citing 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.
The airline spent around INR 5bn towards its aging planes and engines and INR 15 bn for AirAsia India. The report cited industry sources to quote an estimated $30 billion for the total order value of the new 470 planes ordered recently. Payment will be made in parts over the years.
Tata Sons Chairman N Chandrasekaran stressed the importance of customer centricity and safety over profit even as the airline focuses on cutting operational losses.