Tata Group-owned Air India is set to consider a ₹88,000-crore budget for FY27, with the majority earmarked for operational expenditure (opex). The airline projects revenues of ₹75,000–80,000 crore, while Tata Sons may bridge an ₹8,000–10,000 crore gap, underscoring the carrier’s aggressive growth and modernization strategy.
The board of Air India will meet to finalize its FY27 budget, estimated at ₹88,000 crore, with a bulk allocation toward operational costs such as fleet expansion, maintenance, and customer service improvements.
Revenue projections stand at ₹75,000–80,000 crore, but a shortfall of ₹8,000–10,000 crore is expected, which Tata Sons is likely to cover. This reflects the group’s commitment to supporting Air India’s transformation into a globally competitive airline.
The emphasis on opex highlights the airline’s focus on day-to-day efficiency, service quality, and operational resilience, rather than capital-heavy investments. Analysts note that this approach is crucial as Air India integrates new aircraft, expands international routes, and strengthens its digital infrastructure.
Major Takeaways
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FY27 budget pegged at ₹88,000 crore
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Majority allocation for operational expenditure
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Revenue projection: ₹75,000–80,000 crore
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Tata Sons likely to bridge ₹8,000–10,000 crore gap
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Focus on fleet expansion, service quality, and digital upgrades
Conclusion
Air India’s FY27 budget signals a pragmatic strategy: prioritizing operational excellence while ensuring financial stability through Tata Sons’ backing. This positions the airline to compete more effectively in global markets and sustain its ambitious growth trajectory.
Sources: The Hindu Business Line