Tata Group has invested in its own group’s second airline Vistara after investing Rs 18,000 crore in Air India. According to the news of our English affiliate newspaper Indian Express, Tata Sons and Singapore Airlines have jointly invested Rs 500 crore in expansion. The Vistara airline is a joint venture between Tata Sons and Singapore Airlines. Tata holds 51 per cent stake in this company and Singapore Airlines 49 per cent.
Tata’s investment in Vistara has been made within a month of buying Air India from the government. According to the information, Tata Sons has invested Rs 255 crore and Singapore Airlines Airlines has invested Rs 245 crore on February 14. In lieu of investment, 50 crore shares will be given to the promoters.
Vistara Airline in constant loss: Tata Group’s Vistara airline has been making losses for a long time. In the financial year 2020-21, the company had a loss of Rs 1,611 crore, which was 1,813 in the previous year. During this, the company’s income also decreased from Rs 4,738 crore in FY 2020 to Rs 2243 crore. The major reason for the decline in the company’s income is also the lockdown due to the Corona epidemic.
Investing for the third time in a year:This is the third time in a financial year that the promoters have had to infuse capital in the company. Earlier, an investment of 750 crores has been made in August 2021 and 465 crores in May 2021.
Apart from Vistara airline, Tata Group’s airlines portfolio includes Air India, Air India Express, Air Asia. Currently, Vistara has a market share of 7.5%. As per the Summer Schedule 2022, which will be implemented from March 27 to October 29, Vistara will fly 1741 flights every week in the country, as against India’s number one airline IndiGo with 11,130 flights in a week.