According to last financial year’s statements, Air India’s total debt in FY2022 is Rs 15,317 crore. Notably, the debt liability has come down from Rs 45,037 crore in 2021. In January last year, Tata Group had taken control of Air India and Air India Express. Tata is taking over Air India with an assurance that it will pay Rs 2,700 crore in cash and clear a debt of Rs 15,300 crore.
Meanwhile, SBI and Bank of Baroda have not responded to the issue. Bankers are willing to lend to the Tata Group. The reason is that there are very few large corporates looking for large bank loans.
In August last year, Crisil Ratings had given AAA rating to Air India’s long-term bank loans. A1+ rating is re-issued for short-term loans.
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A year after the Tata Group’s takeover, Air India has awarded the world’s largest contract for aircraft in the private aviation sector to companies including Boeing. Air India has placed an order for 470 aircraft worth 70 billion dollars. Air India is buying 250 aircraft from European aircraft manufacturer Airbus and 220 aircraft from American aircraft manufacturer Boeing.
Air India is also preparing to upgrade 40 aircraft at a cost of Rs 3295 crore. 27 Boeing 787–800 aircraft and 13 Boeing 777 aircraft will be upgraded. These are the aircraft acquired with the Tata Group’s takeover of Air India. The first phase of the upgraded aircraft will enter service in 2024.
