A few years ago, the Tata group bought the heavily indebted state-owned airline Air India. After this, Air India’s fortunes changed and now this airline is on the flight of success. In fact, with the arrival of Tata Group, Air India’s days have started looking up. Under Tata, the company’s losses have come down to more than half. According to Tata Sons’ FY24 annual report, the loss of Tata Group’s airline business has come down to Rs 6,337 crore from Rs 15,414 crore in the last financial year.
At the same time, Air India’s revenues rose by 24 per cent in the fiscal year 2024 and reached Rs 51,365 crore. The airline has earned its highest revenue so far in the last financial year. If the company continues on this path, the day is not far when it will start competing with the country’s largest airline, IndiGo.
Air India’s loss remained as follows
The government had privatised Air India in the year 2022. With this, Air India came back home. This airline was founded by the Tata Group itself, but later the government took it over.
According to Tata Group’s annual report, Air India’s loss has narrowed to Rs 4,444 crore in fiscal 2024. A year ago, this figure was Rs 11,388 crore. Tata Sia Airlines’ revenue, which operates under the Vistara brand, rose 29 per cent to Rs 15,191 crore during the same period. Its loss also narrowed from Rs 1,394 crore to Rs 581 crore.
Merger will improve performance
In this financial year, Tata Group has decided to merge Air India and Vistara. This merger is expected to be completed by December 2024. Vistara will conduct its last flight in November and then hand over its aircraft and staff to Air India. Due to this, Air India will get more aircraft and routes. The report says that Air India’s capacity has reached 105 billion available seat kilometres in the financial year 2024. Moreover, the passenger load factor has also increased up to 85 per cent. In the last financial year, Air India, Vistara, Air India Express and AIX Connect have contributed significantly to the growth of Tata Group.
Indigo net profit at Rs 8,167 crore
In the fiscal year 2024, the revenue of Indigo Airlines’ parent company InterGlobe Aviation stood at Rs 68,904 crore. The company made a net profit of Rs 8,167 crore. According to Tata Sons’ 106th annual report, the market capitalisation of Tata Group has reached Rs 30.37 lakh crore. Till a year ago, this figure was Rs 20.71 lakh crore. The profit of Tata Sons, the holding company of Tata Group, also rose by 74 per cent to Rs 49,000 crore. Moreover, the salary of Tata Sons’ chairman N Chandrasekaran also increased by 20 per cent and he now receives Rs 135.32 crore.
