Air India’s total losses including write-offs on old aircraft and engines are estimated at ₹14,000 crore at the end of FY23. Tata Sons had invested around ₹13,000 crore in the airline company in FY23 excluding investment committed for 470 new airplanes, according to a report published by The Economic Times.
The ET report, citing sources, said that the total order value of new planes is estimated at $30 billion for which the company will make payment in installments over the years.
Tata Sons Chairman N Chandrasekaran made it mandatory that customer centricity and safety should be given priority over profit, the report added.
Meanwhile, Air India also finalized the agreement with US-based engine manufacturer CFM International for engines for 400 aircraft in July this year. The deal was first announced in February.
CFM’s LEAP engines will power the Tata Group-backed airline’s new fleet of 210 Airbus A320neo/A321neos and 190 Boeing 737 MAX family aircraft. The two companies have also signed a multi-year services agreement that will cover the airline’s entire fleet of LEAP engines.
Air India has been a CFM customer since 2002 when the airline began operating Airbus A320ceo aircraft powered by CFM56-5B engines.
In 2017, Air India began operating A320neos, becoming the first LEAP-1A-powered operator in India. The airline currently has 27 LEAP-1A-powered A320neo family aircraft in its fleet.
The Tata Group acquired a 100% stake in Air India and Air India Express under a strategic divestment program led by the Indian government in January 2022.
Under a transformational plan called Vihaan.AI, Air India is looking to expand its fleet size threefold and increase its domestic and international market share to 30% in five years.
