India’s Tata may have to write off AirAsia India’s loss – Economic Times

Aug 24 (Reuters) – India’s Tata Sons will likely have to make a provision of 26 billion rupees ($325.69 million) as accumulated losses for low-cost carrier AirAsia India (AIRS.NS) , which it’s seeking to absorb into unit Air India and merge with Air India Express, the Economic Times reported on Wednesday.

Earlier this year, Tata Group-owned Air India proposed to buy the entire equity share capital of AirAsia India, in which Tata has a majority stake, to merge into a single airline. Tata Sons has an 83.67% stake in AirAsia India. read more

No decision has been taken on whether the write-off will be included in the balance sheet of Tata Sons or Air India, the Economic Times reported, citing officials close to the development. (https://bit.ly/3pDdqV5)

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Tata, Air India and AirAsia India did not immediately respond to Reuters’ requests for comment.

Autos-to-steel conglomerate Tata bought state-run carrier Air India in a $2.4 billion equity and debt deal earlier this year, regaining ownership of what used to be India’s flagship carrier after nearly 70 years.

The deal included three entities – full-service carrier Air India, its low-cost arm Air India Express, and AI SATS, which provides ground-handling and cargo services.

($1 = 79.8310 Indian rupees)

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Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/business/aerospace-defense/indias-tata-may-have-write-off-airasia-indias-loss-economic-times-2022-08-24/