Air India's CEO Campbell Wilson has addressed recent concerns about the airline's safety record, stating that the rate of in-flight incidents is "entirely normal" despite media reports of technical snags and flight diversions. Wilson attributed the increased attention to the airline's commitment to transparency in reporting incidents.

Operational Performance Improvements

The Air India Group, which operates over 1,200 daily departures, has reported significant improvements in key performance metrics:

• On-time Performance: August saw on-time performance exceed 80%, nearly 10 percentage points above the average for Air India and Vistara.
• Customer Satisfaction: The airline achieved a record Net Promoter Score of 36.
• Baggage Handling: Improvements were noted in mishandled baggage rates and reunion times.

Addressing Service Issues

To enhance customer service, Air India has implemented several initiatives:

• Empowered frontline teams to issue e-vouchers for service lapses.
• Plans to extend e-voucher capability to cabin crew.

Expansion of Operations

Air India is actively expanding its route network:

• Delhi-Jaisalmer Route: Twice-daily flights will operate from October to March.
• AIX (Low-cost unit) Expansion:
  • New operations in Chandigarh and Ahmedabad.
  • Dehradun operations set to begin on September 15.

Wilson's statements and the reported improvements come at a time when the airline is under increased scrutiny. By highlighting these positive developments, Air India appears to be working towards rebuilding public confidence and enhancing its service offerings in the competitive Indian aviation market.

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.