Wednesday, December 04, 2019

Taking wings! Vistara gets Rs 600-crore boost from promoters

Vistara has received infusion of Rs 600 crore from its promoters — Tata Sons and Singapore Airlines — at a time when the carrier is planning rapid international expansion and domestic yields are under pressure due to a fare war.

The airline’s board approved the allotment of 600 million shares of `10 each to the two promoters on November 28, according to a filing with the ministry of corporate affairs.
A Vistara spokesperson did not reply on the fund-raising till the time of going to the press. While Tata Sons owns 51% in Vistara, Singapore Airlines has the balance 49% in the full-service carrier. According to the aviation regulator, Vistara held 5.4% domestic market share in October 2019.

Tata group has been on an investment mode in its aviation business since its launch in 2014. So far the promoters of Vistara have infused over Rs 1,500 crore in FY20.

The loss-making carrier had raised Rs 2,200 crore in FY19. Vistara’s net losses almost doubled to Rs 831 crore in FY19 due to a tough operating environment. Its operating revenues increased 41% year-on-year to Rs 2,994 crore in the year ended March 31, 2019.
AirAsia India, Tata’s other joint venture carrier with Malaysia-based AirAsia Berhad, also witnessed an investment of Rs 500 crore from the promoters in April 2019.
04/12/19 Arun Nayal/Financial Express

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