Wednesday, November 16, 2016

Cut in AirAsia India funding

New Delhi:  Funding for AirAsia India has been drastically reduced amidst allegations of misappropriation of funds in the company, a report in Business Standard says.
According to the report, the owners of the company reduced their quantum of investment in the airline from an expected Rs 234 crore (RM150 million) to Rs 51 crore for this year.
AirAsia Bhd and Tata Sons are the major shareholders.
The Business Standard report says this cut in funding will impact growth of the airline in India.

It quotes Kapil Kaul, CEO, South Asia at Sydney-based consultant CAPA-Centre for Aviation as saying Rs 51 crore is extremely inadequate, adding that AirAsia India is under capitalised at the moment.
It quotes an AirAsia spokesperson as saying the airline is in its growth phase and is rapidly expanding its business. However, she refrained from responding to a detailed query seeking comment over the reduction in funding.
Another airline official said he expects the funds to come in tranches.
On June 14, the board of AirAsia India had committed to infuse fresh funds worth Rs 234 crore into the airline. Tata Sons and AirAsia Bhd had agreed to approve a fresh issue of shares valuing the amount on a rights basis.
16/11/16 Free Malaysia Today