Tata Sons will likely have to make a provision of Rs 2,600 crore ($325.69 million) as accumulated losses for low-cost carrier AirAsia India, which it’s seeking to absorb into unit Air India and merge with Air India Express, The Economic Times reported on Wednesday.
Earlier this year, Tata Group-owned Air India proposed to buy the entire equity share capital of AirAsia India, in which Tata has a majority stake, to merge into a single airline. Tata Sons has an 83.67 per cent stake in AirAsia India.
No decision has been taken on whether the write-off will be included in the balance sheet of Tata Sons or Air India, The Economic Times reported, citing officials close to the development.
