Back
Jayant Mundhra
ย โขย
Dexter Capital Advisorsย โขย 23d
Air India's return to operating profit is such big news! ๐๐ Sure, the whole Air India Group will still take some time, with the Tatas eyeing all-out profitability in FY27. But the fact that the full-service business is back to operating profit after so many years, that remains a big positive. It proves that private ownership, scale, and ruthless cost discipline beat nostalgia every time. .. I know, many in India still donโt know the difference between Air India and Air India Group. So, just to make it clear, the group runs two separate airlines. - One is Air India (which is what Vistara merged into) - Second is Air India Express, also called AIX (which is what Air Asia India merged into) And itโs the first one, which has returned to operating profit - As per Hindu BusinessLine. .. That said, one might wonder, why the group is targeting full profitability only in FY27. Thatโs because of the investments made on AIX. You see, inโฏjust 18โฏmonths, the lowโcost arm jumped from aboutโฏ25 planes to a fleet of 108 aircraft, including a merger with AirAsia India. Capital costs hit before crews could be trained and utilisation steadied. Thus, the loss there is more about compressing three years of growth into one. Thus, to be fair, the issue is digestion, not demand. And, as the utilisation of planes and resources grows, and the systems stabilise profitability will surely shoot up. .. But, there is one more thing which is helping all of this come out so rosy - The industry structure. IndiGo and Tata airlines now command 92-93% market share in Indian domestic market. Itโs a brutal duopoly, and fares are set by two balance sheets that finally have muscle. People surely do pay a price. But, shareholders win. Just look at IndiGoโs profit numbers and share price growth. Says it all :)
Replies (1)
More like this
Recommendations from Medial
Jaswanth Jegan
Founder-Hexpertify.c...ย โขย 1y
This is more than a takeover for Tata Group Bankruptcy to Billions #7 Tata's Air India Story Air India was founded by J.R.D. Tata in 1932 as Tata Airlines.In 1948 Indian govt acquired 49 percent stake and renamed it as Air India.Air India expanded
See More
Stoxii
MARKET KA NAYA RYTHA...ย โขย 25d
โ๏ธ Indiaโs Aviation Market โ FY 2024 Snapshot The domestic skies are clearly dominated by IndiGo, holding a commanding 61.6% market share by passengers carried. Following behind: ๐น Air India โ 9.7% ๐น Vistara โ 9.4% ๐น Air India Express (AIX Connec
See More
Anonymous
Hey I am on Medialย โขย 1y
Tata Group-run Air India is setting up South Asiaโs largest Flying Training Organisation (FTO) at Amravati in Maharashtra as part of an initiative by the Maharashtra Airport Development Company (MADC). The DGCA-licensed FTO at Amravatiโs Belora air
See More
Chayan Das
ย โขย
ZeroBizzย โขย 1m
How Does HUL Make Money? Here's a quick breakdown of Hindustan Unilever Ltd's revenue for FY25: Total Revenue = โน63,121 Cr Top Revenue Segments: Home Care - 22,958 Cr Foods - โน15,294 Cr Wellbeing (Dove, Lakmรฉ) โ โน13,523 Cr Personal Care (Closeup)
See More
Vishu Bheda
AI did the magicย โขย 11m
Indiaโs Most Profitable Startups: Zoho and Zerodha Lead the Way India's startup ecosystem is witnessing a shift towards profitability, with companies like Zoho and Zerodha setting new benchmarks. # Zoho: Leading the Charge Chennai-based Zoho stand
See More
gray man
I'm just a normal gu...ย โขย 2m
India is poised to expand its aviation landscape in 2025 with the launch of three new airlines: Shankh Air, Air Kerala, and Alhind Air. These newcomers aim to enhance regional connectivity, offer more travel options, and cater to the growing demand f
See More
Yash S
Founder @ Innovzeal ...ย โขย 22d
Air India Crash in Ahmedabad: Multiple Casualties Feared Ahmedabad, June 12, 2025 โ An Air India flight bound for London crashed shortly after takeoff from Ahmedabad's Sardar Vallabhbhai Patel International Airport, killing and injuring multiple peo
See More
Download the medial app to read full posts, comements and news.