Thursday, December 22, 2016

Vistara to turn profitable in 2020-21

Mumbai: Vistara, the full-service airline started by Tata Sons in a joint venture with Singapore Airlines incurred more losses than anticipated in 2015-16 and is likely to make profit in 2020-21 as per the minutes of Tata Sons board meeting that took place in June this year. The minutes were submitted in a petition filed by ousted chairman of Tata Sons Cyrus Mistry with the National Company Law Tribunal.

As per the minutes, Tata SIA Airlines Ltd,. which runs Vistara, missed its budgeted revenue by 10 per cent for the year 2015-16 and reported a loss of Rs.399 crore as against budgeted loss of Rs.335 crore.

The board was informed that the revised financial forecast indicated an incremental equity requirement of Rs.600 crore as against Rs.300 core presented to the Tata Sons board earlier.

The board approved the infusion of not more than Rs.310 crore into the company as Tatas hold 51 per cent equity in the airline while the rest is with Singapore Airlines.

“The Board noted the revised equity requirement of Rs.600 crore of the Tata SIA Airlines Ltd and unanimously approved an invest amount of not more than Rs.310 crore instead of the earlier approvals for investment in Tata SIA Airlines Ltd.,” the board said.
22/12/16 The Hindu
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