AirAsia likely to exit India ops, end JV with Tatas
PORTS & SHIPPING

AirAsia likely to exit India ops, end JV with Tatas

Malaysian airline Air Asia reported this week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. This signals a possible exit of the carrier from the fifth largest economy of the world. The airline had entered the country six years ago with considerable business expectations. The airline said that the Indian leg of their operations has been draining cash, further compounding their financial woes that already stand aggravated due to global travel restrictions that have been set in place courtesy of Covid-19.  

AirAsia holds 49% of the Indian unit, which has been unprofitable from the very beginning, while Tata Sons holds the remaining portion of 51%. The Malaysian carrier’s review of its operations in India comes on the heels of a bankruptcy filing by its Japanese arm. Citing highly challenging operating conditions, the airline ceased flying in Japan in the last month itself. 

AirAsia told the media that the group is witnessing substantial financial stress owing to its cash-drainingoperations in India and Japan. Citing the recent closure of AirAsia Japan, he said that they were pushed to review their investment in AirAsia India after having prioritised reducing cash burns, and cost containment during these times. 

  Tata Sons holds the power to exercise the first right of refusal for AirAsia’s minority stake in the India venture. Tata Sons is in discussions to buy out the Malaysian airline after the latter expressed their hesitation to pump fresh funds into the India joint venture. In FY2020, AirAsia reported a loss of Rs 317 crore.

Malaysian airline Air Asia reported this week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. This signals a possible exit of the carrier from the fifth largest economy of the world. The airline had entered the country six years ago with considerable business expectations. The airline said that the Indian leg of their operations has been draining cash, further compounding their financial woes that already stand aggravated due to global travel restrictions that have been set in place courtesy of Covid-19.   AirAsia holds 49% of the Indian unit, which has been unprofitable from the very beginning, while Tata Sons holds the remaining portion of 51%. The Malaysian carrier’s review of its operations in India comes on the heels of a bankruptcy filing by its Japanese arm. Citing highly challenging operating conditions, the airline ceased flying in Japan in the last month itself.  AirAsia told the media that the group is witnessing substantial financial stress owing to its cash-drainingoperations in India and Japan. Citing the recent closure of AirAsia Japan, he said that they were pushed to review their investment in AirAsia India after having prioritised reducing cash burns, and cost containment during these times.   Tata Sons holds the power to exercise the first right of refusal for AirAsia’s minority stake in the India venture. Tata Sons is in discussions to buy out the Malaysian airline after the latter expressed their hesitation to pump fresh funds into the India joint venture. In FY2020, AirAsia reported a loss of Rs 317 crore.

Next Story
Infrastructure Transport

SAIL Supplies 16,000 Tonnes Steel for Chenab Rail Bridge

The Steel Authority of India Ltd (SAIL) has supplied 16,000 tonnes of steel for the construction of the world’s tallest railway bridge spanning the Chenab river in Jammu and Kashmir. Of this total, the Bhilai Steel Plant contributed approximately 12,400 tonnes, according to a company official on Friday.The announcement coincided with Prime Minister Narendra Modi flagging off the first train service to the Kashmir Valley and inaugurating several infrastructure projects. Among these were the world’s highest railway bridge over the Chenab and India’s first cable-stayed arch bridge.A senior ..

Next Story
Infrastructure Energy

Lloyds’ Surjagarh Mine to Become India’s First ‘Green Mine’

The Surjagarh iron ore mine (SIOM) of Lloyds Metals and Energy (LMEL), located in Maharashtra's Gadchiroli district, is set to become India's first 'green mine' due to its environment-friendly initiatives and strong emphasis on reducing the carbon footprint in mining operations. The mine has already achieved an annual reduction of 32,000 tonnes of CO2 emissions. With plans to transition to renewable energy, this reduction is expected to increase to approximately 50,000 tonnes annually through innovations and the use of green technology across mining processes from drilling to dispatch.LMEL's d..

Next Story
Infrastructure Transport

Kerala Gets Rs 67 Bn Boost for Road Development Projects

The Kollam-Senkotta Greenfield (NH 744) project is expected to receive approval within three months. The proposed Mysuru-Malappuram Economic Corridor will be considered for approval after a detailed study is completed.In-principle approval has been granted for the Willingdon Island-Kundannur Greenfield Corridor and the Azhikkal Port Connectivity Project. The implementation of the Kothamangalam-Muvattupuzha bypass as a single stretch has also been approved.The long-pending Punalur bypass project has received approval, and the National Highways Authority of India (NHAI) has been instructed to su..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?