Tata Sons may have to write off Rs 2,600 cr AirAsia India's losses: Report

Tata Sons will likely have to write off Rs 2,600 crore in form of accumulated losses for AirAsia India, which Tata Group-owned Air India has proposed to fully acquire

airasia
BS Web Team New Delhi
2 min read Last Updated : Aug 24 2022 | 9:20 AM IST
Tata Sons will likely have to write off Rs 2,600 crore in the form of accumulated losses for AirAsia India, which Tata Group-owned Air India has proposed to fully acquire and merge with Air India Express, reported The Economic Times on Wednesday. 

No decision has been taken on whether the write-off will be included in the balance sheet of Tata Sons or Air India, ET reported, citing officials aware of the development.

An auditor's report, casting doubts on AirAsia India as a "going concern,"  stated that the airline's net worth has been fully eroded and its liabilities exceed current assets, reported ET. 

Already reeling under losses, AirAsia India was badly affected by the Covid-19 pandemic, officials told ET.

Air India, earlier this year, offered to buy the entire equity share capital of AirAsia India, in which Tata Sons has an 83.67 per cent stake. Air India has sought the approval of the Competition Commission of India for the same.

AirAsia India's remaining 16.33 per cent stake is currently owned by AirAsia Investment Ltd, part of Malaysia's AirAsia Group.

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.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Tata SonsAirAsia IndiaAir Indiaair india expressTata groupTataCompaniesAutomobile

Next Story