Tata Group reported a consolidated losses of $1.87 bn citing financial liabilities and the cost of fixing grounded planes and upgrading aircraft. The Tata Group currently comprise of Air India, Air India Express, AirAsia India, and Vistara reported a total loss of $1.4 bn. The group revealed its results for last financial year with Air India’s financial liabilities continuing to affect the bottom line despite an uptick in business.
Air India Express was the only airline in the Tata Group to post a profit, with a net profit of $14 million in the last financial year.
Air India’s total loss was $1.4 billion on revenue of $4.6 billion. The Group spend a significant amount of cash in repairing grounded planes and investing in aircraft modernization and latest technology. The impairment charges alone for Air India’s old aircraft amounted to $615 million.
AirAsia India posted a loss of $331 million, while Vistara had a net loss of almost $168 million. The two airlines have failed to be profitable so far, but there are hopes of revival following their mergers with Air India and Air India Express.
The only Tata Group airline to have reported a profit in the last financial year ending in March 2023 is Air India Express, with a net profit of $14 million. The airline lost money for the first time in seven years due to the pandemic. But it bounced back again in 2022-23.
While the AirAsia India and Air India Express merger is expected to finalize sooner than expected, the Competition Commission of India is still reviewing the business integration request for Air India and Vistara.
Meanwhile, it has been reported that Air India is in conversation with several banks for loans amounting to $362 million to make the down payment for the sale-and-leaseback deals with aircraft lessors.
Over the next decade, Air India will take deliveries of 190 Boeing 737 MAX, 20 787, and 10 B777X aircraft, and 210 A320 family and 40 A350 planes from Airbus.