Singapore Airlines and Tata Sons invest Rs 750 cr in Vistara

Singapore Airlines and Tata Sons, owners of premium airliner Vistara, have invested Rs 750 crore into it, according to the data from Tofler. As per the filing, by issuing 75 crore shares, Singapore Airlines and Tata Sons invested Rs 367.5 crore Rs 382.5 crore, respectively. It is the fifth round of investing by Vistara owners into the airline since April 2020 since it struggles like its rivals amid the Covid-19 pandemic that has hit air travel demand and financials of airline firms. India's airlines are likely to lose $8.2 billion in FY21 and FY22 combined, as per the estimates by CAPA-Centre for Aviation. Vistara recorded a net loss of Rs 1,813 crore in FY20. Its losses have grown in the last few years from Rs 400 crore in FY16. It commenced operations on January 9, 2015. In May, Tata Sons that holds 51% of Vistara, invested Rs 237.15 crore, while Singapore Airlines that owns the remainder, invested Rs 227.85 crore. Tata Sons and Singapore Airlines pumped in Rs 200 crore in April 2020, Rs 750 crore in July and Rs 585 crore in November. The repeated rounds of investment display Tata Sons serious plans for the aviation sector even as it is one of the worst-hit in the pandemic. The conglomerate is also in the fray for funding in the national carrier Air India. It is reportedly in the lead in the preliminary bidding rounds. The government intends to complete the process of Air India’s divestment by the year-end. Vistara has a fleet of 48 aircraft, comprising 37 Airbus A320, three Airbus A321neo, six Boeing 737-800NG, and two Boeing 787-9 Dreamliner aircraft, and has flown over 25 million customers since commencing operations. Image Source Also read: Govt to invest Rs 25k cr to develop civil aviation sector