Losses mount for Tata Group’s aviation ventures

Losses are mounting at the airline firms of the Tata Group – AirAsia India and Vistara. While Vistara’s losses in financial year 2018-19 nearly doubled to Rs 830 crore compared to the previous year, AirAsia’s losses quadrupled to over `670 crore in the same period. Tata Sons holds 51% stake in both airlines. Both have incurred losses through the past four financial years.

In FY19, AirAsia’s other expenses saw a 70% y-o-y increase to Rs 2,830.62 crore. The airline’s liabilities went up 84% y-o-y to Rs 1,537.07 crore during the year, on account of its trade payable more than doubling to `827.8 crore. The airline saw a net decrease in cash and cash equivalents of Rs 103.67 crore in FY19 against a net increase of Rs 93.47 crore in FY18.