AirAsia India's loss may have to be written off by Tata

24 Aug 2022 , 07:33 AM

According to news reports, Tata Sons will probably need to set aside Rs2,600 crore as accumulated losses for AirAsia India, which it intends to merge with the low-frills subsidiary Air India Express and incorporate into Air India.

According to an auditor’s assessment, AirAsia India cannot be considered a “going concern” because its net worth has completely depleted and its liabilities surpass its current assets, reported ET.

Air India, which is controlled by Tata, wants to buy 100% of AirAsia India and has applied for permission from the Indian Competition Commission. The no-frills airline is owned by Tata Sons 83.67% of the time, and AirAsia Investment Ltd, a subsidiary of Malaysia’s AirAsia Group, holds the remaining 16.33%.

Full-service airline Air India serves both home and foreign markets. Short-haul international travel is the main focus of Air India Express, particularly from south India and elsewhere to the Middle East.

According to news reports, Tata Group has begun the process of combining AirAsia India with Air India Express.