New Delhi: Just before the final procedures of divestment, national carrier Air India’s 2021-22 first half (H1FY22) net loss rose over 43 per cent on a year-on-year basis.
The airline’s net loss rose to Rs 5,422.6 crore during the period under review from Rs 3,779.26 crore reported for the previous corresponding period.
These figures were a part of the unaudited standalone financial results for the half year ended September 30, 2021, as reviewed by IANS.
Besides, the company reported a YoY rise in its revenue of 21 per cent to Rs 5,524 crore.Ā Furthermore, the airline’s expenditure during the period under review rose to 31 per cent to Rs 10,946 crore.
Additionally, current liabilities rose to Rs 67,650.9 crore from Rs 59,987.2 crore during the corresponding period of the previous year.
Notably, a substantial amount of Air India’s debt and liabilities have been subsumed by Air India Asset Holding Ltd before the divestment of the airline.
Under the second batch of FY22 ‘Supplementary Demands for Grants’, the Centre sought Parliament’s permission for Rs 62,057 crore, which would be given to the Ministry of Civil Aviation for equity infusion in Air India Assets Holding Ltd for repayment of past dues and liabilities.
The financial result was presented to the Board of the national carrier which met on Thursday, December 30, 2021.
The development comes before the likely take-over of the airline’s management by the Tata Group under the Centre’s divestment programme.
At present, Tata Group has entered into a share purchase agreement with the government for buying out the latter’s stake in national carrier Air India, Air India Express, and AISATS.
Tata Sons’ subsidiary Talace emerged as the highest bidder for national carrier under the divestment process.Ā It had quoted an enterprise value of Rs 18,000 crore for 100 per cent equity shareholding of the Centre in Air India along with that of Air India Express and AISATS.
It was announced, that out of Rs 18,000 crore, Talace will retain Rs 15,300 crore debt, while the rest will be paid to the Centre as the cash component.