AirAsia India expected to receive $50 million from Tata group
AVIATION & AIRPORTS

AirAsia India expected to receive $50 million from Tata group

In a recent development, Tata Sons is expected to infuse a sum of Rs 369.5 crore into their AirAsia joint venture. The group which already owns a 51% stake in the airline is carrying out the capital infusion as emergency funding in a bid to keep the carrier afloat in light of all the losses it has incurred.

The Malaysian airline had declared last week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. (Read CW story: AirAsia likely to exit India ops, end JV with Tatas) . This signalled a possible exit of the carrier from the fifth largest economy of the world. Additionally, the troubled airline had reported that their Indian leg of operations has been draining cash, further compounding their financial woes that already stand intensified courtesy of the global travel restrictions that have been set in place on account of Covid-19.

Pointing to difficult operating conditions, the carrier shut down its operations in Japan in the past month. The latest influx of capital that is being carried out by the Tata Sons is expected to be accomplished via a mix of equity and debt. In the process, the group’s take in the Malaysian airline is projected to grow beyond their existing share of 51%.

Bo Lingam, president (airlines) of AirAsia group had mentioned earlier that they were at the receiving end of considerable financial stress owing to their cash-draining operations in India and Japan. Citing the recent closure of AirAsia Japan, he said that they were pushed to review their investment in AirAsia India after having prioritized cost control and burns during these times.

A noteworthy fact is that the launch of AirAsia’s India wing had signified the return of Tatas to aviation, a venture that it had pioneered in the country through disinvestment-marred Air India.

In a recent development, Tata Sons is expected to infuse a sum of Rs 369.5 crore into their AirAsia joint venture. The group which already owns a 51% stake in the airline is carrying out the capital infusion as emergency funding in a bid to keep the carrier afloat in light of all the losses it has incurred.The Malaysian airline had declared last week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. (Read CW story: AirAsia likely to exit India ops, end JV with Tatas) . This signalled a possible exit of the carrier from the fifth largest economy of the world. Additionally, the troubled airline had reported that their Indian leg of operations has been draining cash, further compounding their financial woes that already stand intensified courtesy of the global travel restrictions that have been set in place on account of Covid-19.

Next Story
Infrastructure Urban

We operate 100 smart buses serving 30,000 passengers daily

Aurangabad, known as the ‘City of Gates’ owing to its historical monuments and Mughal heritage, is equally renowned for its industrial development, with a nominal gross district domestic product (GDDP) of Rs.988.04 billion. As growth has progressed, there has been a focus on enhancing the standard of living, prompting key initiatives, including the award-winning Majhi Smart  Bus Initiative. G Sreekanth (IAS), CEO, Aurangabad Smart City Development Corporation Ltd (ASCDCL), discusses the city’s ongoing and upcoming developments in conversation  with NEHA YADAV.Recent news h..

Next Story
Infrastructure Energy

Sterling and Wilson Secures Rs 12 Bn Solar EPC Contract in Gujarat

Sterling and Wilson Renewable Energy has been awarded a Rs 1,200 crore contract for a 500-megawatt (MW) solar photovoltaic (PV) project in Gujarat, strengthening its foothold in India’s renewable energy sector. The engineering, procurement, and construction (EPC) contract encompasses the design, engineering, and installation of balance-of-system (BoS) components with single-point responsibility. It also includes operations and maintenance (O&M) services for three years. “We are delighted to secure this significant order, which will aid India, especially Gujarat, in its transition to clean ..

Next Story
Infrastructure Energy

NTPC Green Energy Signs MoU with Bihar Government

NTPC Green Energy (NGEL), a subsidiary of NTPC, has entered into a Memorandum of Understanding (MoU) with the Department of Industries, Government of Bihar, during the Bihar Business Connect 2024 Global Investors’ Summit held on 20 December 2024 in Patna. The MoU outlines plans for substantial investments in Bihar to establish various renewable energy projects, including: Ground-mounted and floating solar installations Battery energy storage systems Green hydrogen mobility initiatives The Bihar Government will assist by facilitating necessary approvals, permissions, registrations, and cleara..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000