Air India reports an Rs.5,422.6 crore loss for H1FY22
Just ahead of Tata Group taking over Air India, a net loss of Rs.5,422.6 crore in the first half of the financial year 2021-22 as against a loss of Rs.3,779.26 crore in the year-ago period by Air India. The first half (H1FY22) net loss rose over 43 percent on a year-on-year basis.
Nearly two decades after the last privatization, a landmark divestment concluded in the year 2021, when the loss-making national carrier Air India was sold to the Tatas. Tata Sons‘ subsidiary Talace Pvt Ltd emerged as the highest bidder for national carriers under the divestment process.
The National carrier Air India Limited has suffered losses every year since its merger with Indian Airlines in 2007-08.
Air India’s liabilities are expected to cross $20 billion by 2024-2025, which includes losses reported during FY21 and FY22 due to the pandemic, aviation consultancy firm Capa India said in its India Aviation Outlook FY22.
The loss reported is a part of the unaudited standalone financial results for the half-year ended September 30, 2021. Besides, the company reported a YoY rise in its revenue of 21 percent to Rs.5,524 crore. The airline’s expenditure is also on a rise of 31 percent to Rs.10,946 crore.
Additionally, current liabilities rose to Rs.67,650.9 crore from Rs.59,987.2 crore during the corresponding period of the previous year.
Under the second batch of FY22 ‘Supplementary Demands for Grants’, the Centre sought Parliament’s permission for Rs.62,057 crore, which would be given to the Ministry of Civil Aviation for equity infusion in Air India Assets Holding Ltd for repayment of past dues and liabilities.
The Board of Air India was presented with the financial result on December 30, 2021. The meeting was held before the likely take-over of the airline’s management by the Tata Group under the Centre’s divestment programme.
At present, Tata Group has entered into a share purchase agreement with the government for buying out the latter’s stake in national carrier Air India, Air India Express, and AISATS.
It had quoted an enterprise value of Rs.18,000 crore for 100 percent equity shareholding of the Centre in Air India along with that of Air India Express and AISATS. It was announced, that out of Rs.18,000 crore, Talace Ltd will retain Rs.15,300 crore debt, while the rest will be paid to the Centre as the cash component
A substantial amount of Air India’s debt and liabilities have been subsumed by Air India Asset Holding Ltd before the divestment of the airline.
[With Inputs from IANS]
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