Tata Sons, which has taken over Air India with a Rs18,000 crore bid will have to spend more money– which could work out to nearly the same amount — to restructure the carrier.

A TOI report says it has already invested Rs 6000 in its existing airline startups , AirAsia India and Vistara, and lost over Rs 9,000 crore till date. Air India, which has not made a profit in the last 14 years, will add to that burden.

Tata sons will now have to put  in lots more money into Air India | @a2zblog.in
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Aviation industry across the world is facing headwinds because of the current travel restrictions, and the TataGroup has estimated that its latest investment will not be profitable till 2025, when global passenger traffic returns to pre-Covid levels.

TataSons will have to find this money, even as it is making ambitious moves in digital, hi-tech manufacturing and health.

• Which shouldn’t really be an issue since TCS is continuing to do very well, and there is an upcycle in the steel industry.

Tata sons will now have to put  in lots more money into Air India | @a2zblog.in

• It can also raise capital by monetising its investments.

Telecom (Tata Teleservices) has been a thorn in Tata Sons’s bouquet for some years, but that’s been dealt with.

• Shareholdings have been raised in existing businesses and TataSons is in a comfortable position now.

• Besides, growth capital has been infused in units (like Tata Power and Tata Motors) to deleverage their balance sheets.

It will not be a problem to push in more funds into aviation and other new businesses to support and accelerate their growth,” a person familiar with Tata Sons’s moves told TOI.

Tata sons will now have to put in lots more money into Air India | @a2zblog.in

Information source economic times.

Read more : Akasa Air founder Rakesh Jhunjhunwala meets PM and FM.

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