Tata Could Have To Write Off AirAsia India's Loss: Report

Tata Could Have To Write Off AirAsia India's Loss: Report [ad_1]

India's Tata could have to write down off AirAsia India's loss: Report

India's Tata Sons will probably must make a provision of 26 billion rupees ($325.69 million) as accrued losses for low-cost service AirAsia India , which it is searching for to soak up into unit Air India and merge with Air India Specific, the Financial Instances reported on Wednesday.

Earlier this yr, Tata Group-owned Air India proposed to purchase all the fairness share capital of AirAsia India, by which Tata has a majority stake, to merge right into a single airline. Tata Sons has an 83.67% stake in AirAsia India.

No resolution has been taken on whether or not the write-off will likely be included within the steadiness sheet of Tata Sons or Air India, the Financial Instances reported, citing officers near the event.

Tata, Air India and AirAsia India didn't instantly reply to Reuters' requests for remark.

Autos-to-steel conglomerate Tata purchased state-run service Air India in a $2.4 billion fairness and debt deal earlier this yr, regaining possession of what was once India's flagship service after almost 70 years.

The deal included three entities - full-service service Air India, its low-cost arm Air India Specific, and AI SATS, which supplies ground-handling and cargo providers.

($1 = 79.8310 Indian rupees)

[ad_2]