Tata's acquisition of Air India in January 2023 marked a significant change for the airline. in its first fiscal year under Tata ownership, FY23, the airline reported a loss of rupees 11,381 crore, up 18.6 percent from the previous fiscal year, FY22, which had a loss of rupees 9,591 crore after accounting for write-offs and exceptional items.
Its revenues from operations doubled to rupees 31,377 crore, up from 26,346 crore. This increase was driven by various factors, including significant exceptional items. The airline has committed expenses to refurbishment and induction of aircraft, upgrading technology, and adding more employees among others. Under the profit and loss statement, the company detailed exceptional items amounting to rupees 6,610 crore in FY23, an increase from rupees 2,500 crore contributed to the overall expenses.
Additionally, the financial figures included 'impairment of assets', totaling over rupees 5,100 crore, and a provision of diminution in the value of assets (aircraft and engines) 'held for sale' amounting to 1,041 crore.
The introduction of a Voluntary Retirement scheme (VRS) also incurred an estimated cost of rupees 465 crore, recognized as an exceptional item in the profit and loss statement. This VRS was offered to over 3,500 employees as part of the company's efforts to streamline its workforce. These factors, along with the exceptional items, played a role in the increased expenses for the fiscal year, it said.