Even as the Rs 18,000 crore acquisition of Air India (AI) will provide Tata Sons valuable access to various international destinations, the conglomerate seems headed for a long haul to turn the debt-ridden state-run carrier into a profitable entity.

The Tata Group ceded control of the airline it started in 1932 to the government in 1953. But the airline that was once known for its lavish planes and service suffered a gradual decline since the mid-2000s, prompting the government to spend over Rs 1.1 lakh crore to either directly make up the losses or raise loans for the purpose since 2009-10.

Tata Sons wins bid to acquire national carrier Air India

Industry executives quoted by Reuters said the Tatas may have to shell out more than $1 billion to address the “myriad problems” beseeching the airline, including its “worn-out fleet, poor service and the lack of a charismatic leader.”

“If you don’t have newer airplanes or airplanes that are reliable, no matter what you do, you are going to have a problem,” a veteran aviation industry executive, who didn’t want to be idenitfied, told the news agency.

AI has also had to ground some of its new Boeing Co 787 Dreamliners to use for spare parts. Customers have complained of delays while employees have gone on strike over pending salaries.

Tata Sons acquires Air India: How history repeats itself

The Tatas will have until summer 2022 to fix the issues and benefit from a post-COVID-19 travel surge, the executive added.

But AI deal will also provide Tatas competitive advantages such as the airline’s ability to fly non-stop to destinations like the United States and Europe. Tatas would also get ownership of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at foreign airports.

Many industry experts expect a surge in the popularity of non-stop flights.

“I’m a big believer if a passenger has a choice their strong preference is to fly point to point,” Robert Martin, chief executive of lessor BOC Aviation said at an event last week.