Air India and its subsidiary Air India Express have reported significant losses. The combined loss before tax for both airlines amounted to Rs 9,568.40 crore, highlighting the financial hurdles faced by the Tata Group-owned carriers.

Breakdown of Losses

Air India, the flagship carrier, recorded a loss before tax of Rs 3,890.20 crore. More surprisingly, Air India Express, which had maintained a profitable streak for an extended period, turned loss-making with a substantial loss of Rs 5,678.20 crore.

Industry Comparison

The financial performance of Air India and Air India Express stands in contrast to some of their competitors:

IndiGo emerged as the clear leader, reporting a profit before tax of Rs 7,587.50 crore. In comparison, newer entrant Akasa Air posted a loss of Rs 1,983.40 crore, while SpiceJet's losses were relatively contained at Rs 58.10 crore.

Debt Positions

The financial challenges extend beyond operational losses. Air India's debt stood at Rs 26,879.60 crore, reflecting the ongoing financial burden carried by the airline. However, market leader IndiGo reported an even higher debt of Rs 67,088.40 crore, indicating that debt management remains a critical issue across the industry.

Tata Group Acquisition and Industry Deregulation

The Tata Group acquired both Air India and Air India Express in January 2022. The group has been working on turning around the airlines' fortunes since the acquisition.

The civil aviation ministry has emphasized that following aviation deregulation, airlines manage their financial and operational decisions based on commercial considerations. This regulatory stance underscores the competitive and challenging environment in which Indian carriers operate.

As the aviation sector continues to navigate recovery and intense competition, the financial performance of Air India and Air India Express highlights the ongoing challenges in achieving profitability and managing debt in this dynamic industry.

Air India's flight AI138 from Milan to Delhi was abruptly cancelled after passengers had already boarded, leading to a grueling 12-hour ordeal for travelers. The incident, which occurred during Italy's August holiday break, has raised questions about the airline's operational efficiency and customer service.

Flight Cancellation and Delays

The cancellation came after passengers had been seated in the aircraft for three hours. Air India cited two primary reasons for the cancellation:

1. Maintenance issues encountered during pushback
2. Crew duty-time limitations

These factors ultimately led to the decision to cancel the flight, leaving passengers stranded and frustrated.

Passenger Complaints

Travelers reported several issues with the aircraft condition, including:

• Non-functional entertainment systems
• Faulty air-conditioning
• Limited communication from the crew

These complaints highlight ongoing concerns about the quality of Air India's aging fleet, even as the airline undergoes a fleet renewal process under its new ownership by the Tata Group.

Extended Ordeal for Passengers

The situation was further complicated by the limited ground staff available due to Italy's August holiday break. As a result:

• Passengers faced significant delays in baggage retrieval
• Processing of passengers continued until 4:30 am
• The total ordeal lasted approximately 12 hours

Air India's Response

In response to the cancellation and subsequent delays, Air India took several steps to accommodate affected passengers:

1. Provided hotel accommodation
2. Issued 10-euro food vouchers
3. Arranged alternate travel routes:
   • Flights to Zurich on Swiss Air
   • Connecting Air India flights to final destinations

Implications for Air India

This incident brings to light several challenges facing Air India:

1. Fleet Maintenance: The technical issues underscore the need for improved maintenance of the existing fleet.
2. Customer Service: The limited communication during the ordeal points to potential gaps in customer service protocols.
3. Operational Efficiency: The extended delays in processing passengers and retrieving baggage suggest room for improvement in operational procedures.

As Air India continues its transformation under Tata Group ownership, incidents like these highlight the importance of addressing both fleet renewal and service quality to regain customer trust and improve overall performance in the competitive aviation industry.