Tata Sons may have to write off AirAsia India’s debt: Report
Tata Sons will likely have to make a provision of INR 26 billion (USD 325.69 million) as accumulated losses for low-cost carrier AirAsia India, 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.
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.
Tata, Air India and AirAsia India did not immediately respond to Reuters’ requests for comment.