Tata Sons wins bid: Air India may see turnaround as debt eases by 75%

Air India reported an operating profit of Rs 1,787 crore in FY20 on a consolidated basis but reported a net loss of Rs 7427 crore due to interest and depreciation costs

With the bulk of Air India’s debt and liability being taken over by the government of India (GoI), it should become far easier for Tata Sons to turn around the finances of the airline. Less than 2 per cent of Air India’s cumulative net loss on a consolidated basis in the last 10 years was due to operating losses; the rest was due to interest on debt and depreciation allowance for the aircraft purchased by the airline to expand its fleet.
 
Air India reported an operating profit of Rs 1,787 crore in FY20 on a consolidated basis but reported