Thursday, August 26, 2021

AirAsia India FY21 loss doubles on year, Vistara's narrows

Mumbai: Tata Sons' subsidiary airline AirAsia India’s annual net loss almost doubled in FY21 and its net worth got completely eroded as the airline’s business, like its peers, was deeply impacted by the Covid-19 pandemic. Vistara, the conglomerate's venture with Singapore Airlines, narrowed its losses.

AirAsia India posted an annual loss of Rs 1,532 crore for 2020-21 against Rs 782 crore in the previous year, according to its annual report filed with the corporate affairs ministry.

Its revenue plunged 63 per cent year on year to Rs 1,359 crore while accumulated loss grew to Rs 3,680.34 crore.

“Its net worth has been fully eroded, and the company’s current liabilities exceed its current assets as at the balance sheet date by Rs 2,108.99 crore,” said its statutory auditors SR Batliboi & Associates. The numbers and the impact of Covid-19 cast doubts on the company’s ability to continue as a going concern, it said.

Vistara or Tata SIA Airlines' loss for the year narrowed to Rs 1,1612 crore from Rs 1,814 crore a year earlier, when it had soared from Rs 831 crore in FY19. Its total liabilities were Rs 11,491 crore while its reserves and surplus were a negative Rs 6088 crore.

The pandemic has deeply impacted businesses of Indian carriers, like their global peers and pushed them into deep losses. Sydney-based CAPA Centre for Aviation has estimated that the Indian airline industry will post combined losses of over $8 billion in FY21 and FY22.

26/08/21 Anirban Chowdhury/Economic Times

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