Vikrant Shekhawat : Sep 08, 2024, 06:30 AM
Tata Group: Tata Group-owned Air India has made significant progress in strengthening its financial position in FY 2023-24. The company has reduced its loss by 60 per cent year-on-year to Rs 4,444.10 crore. This significant reduction is compared to a loss of Rs 11,387.96 crore in the previous financial year 2022-23. According to the recently released annual report of Tata Sons, Air India has also registered a significant increase in its business during this period. The company's turnover grew by 23.69 per cent to Rs 38,812 crore, while this figure was Rs 31,377 crore in the previous financial year.Mergers and increase in market shareThe strategic plans of the Tata Group include expanding Air India's aviation presence. According to the report, Air India has further strengthened its presence through mergers with AirAsia India (AEX Connect) and Vistara. Notably, Air India has recorded its highest ever consolidated annual operating income of Rs 51,365 crore in FY 2023-24, which is 24.5 per cent higher than in 2022-23. Moreover, the passenger factor has also seen improvement; compared to 82 per cent in 2022-23, the figure has reached 85 per cent in 2023-24.Operations and future plansThis fiscal, Air India operated 800 daily flights to 55 domestic and 44 international destinations, carrying a total of 4.04 crore passengers. This is a clear indication of the company's expanding network and growing customer demand.The Tata Group now fully owns three airlines: Air India, Air India Express, and AIX Connect. Vistara, which is a joint venture, is 51 per cent owned by the Tata Group and 49 per cent by Singapore Airlines. Vistara has recently announced that its last flight will be on November 11 and its operations will be merged with Air India from November 12. Apart from this, Air India Express chief Alok Singh has also announced that AIX Connect will be merged with Air India Express from October 1.ConclusionAir India, led by the Tata Group, has made significant improvements despite a difficult financial scenario. A 60 percent reduction in losses and business growth are proof that the company has made effective improvements in its strategy and operations. There are signs of success in Air India's plan for the future and an increase in its market share with its expanded network.