Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> hikes its stake in <keyword id="1583080" type="COMPANY" weightage="20" keywordseo="AirAsia-India">AirAsia India</keyword>, buys additional 32.67% stake for $37.66 million (₹276 crore).</li><li>Tata Group now holds 83.67% stake in the venture, with an option to acquire the rest 16.33% stake for $18.83 million.</li><li>This move comes as the race for Air India’s divestment heats up, with its second phase beginning on January 5. Tata Sons has filed an expression of interest to rescue the cash-strapped national carrier. </li><li>The government will announce the names of qualified bidders in the second phase of the divestment process. </li></ul>AirAsia Group Berhad announced that it would <a href="https://newsroom.airasia.com/news/airasia-group-reduces-stakes-in-airasia-india">sell 32.67% stake in AirAsia India to Tata Sons </a>for $37.66 million (₹276 crore). This will bring its shareholding in the joint venture with Tata Sons to 16.33%. Tata Group now holds 83.67% stake in the venture, with an option to acquire the rest 16.33% stake for $18.83 million. Tata group earlier owned 51% of the stake in the joint venture. This move gains significance as the race for Air India heats up, and Tatas have shown preliminary interest in bidding for the national carrier. Tata Sons filed an <a href="https://www.businessinsider.in/india/news/tata-group-may-reportedly-bid-for-air-india-through-air-asia/articleshow/79716935.cms">Expression of Interest </a>to rescue cash strapped Indian flag carrier Air India last week. The second phase of the strategic disinvestment of Air India will start on <a href="https://www.businessinsider.in/india/news/second-phase-of-air-india-disinvestment-to-begin-from-january-5/articleshow/80010981.cms?upcache=2">January 5,</a> with the announcement of the names of the qualified bidders.In the stage II, shortlisted interested bidders will be provided with a request for proposal (RFP) and thereafter there will be a transparent bidding process, said a presentation by the ministry. Earlier this year, Rashtriya Swayamsevak Sangh (<a href="https://theprint.in/india/sell-air-india-only-to-an-indian-entity-rss-tells-modi-govt/356996/">RSS) had raised their opposition</a> against the sale of Air India to foreign airlines and conveyed their concerns to the government. RSS had said that the national carrier must be only sold to an Indian entity. Other Swadeshi lobbies, including Swadeshi Jagran Manch (SJM), had raised their resistance as well. Meanwhile, earlier this month, BJP MP Subramanian Swamy had urged the government to <a href="https://www.hindustantimes.com/india-news/bjp-mp-asks-hardeep-puri-to-disqualify-tata-sons-from-air-india-s-bidding-process/story-ZLm4oh66pXS8pO1IqayVOP.html">disqualify Tata Sons </a>from the Air India disinvestment process till a final decision on his plea against Tata Sons and AirAsia India is taken by the court. Subramanian in 2013 had filed a petition in the Delhi high court challenging the illegal grant of license to <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> India. AirAsia moves to reduce its cash burn “This transaction is in line with our initiatives towards reducing cash utilisation for the Group and will allow us to use cash to grow market share in our core markets in Asean, particularly in Malaysia, Thailand, Indonesia and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam.,” said President (Airlines) of AirAsia Group, Bo Lingam. “India will remain an important market for AirAsia. TSL has been an excellent partner and we look forward to continue working closely together in other areas of growth,” he added. The group in a Malysian stock exchange filing said the cash received as purchase consideration will be utilised as working capital in Q1 for the parent company. The company also hinted towards further liquidation of its assets saying “as India is a non-core market for AirAsia (being a non-ASEAN country), the company will continue to regularly reassess its business strategies and dispose of non-core investments to augment its liquidity.” AirAsia’s bumpy ride The Malaysian partner has been battling financial headwinds for quite some time now. AirAsia also gave a clear indication on exiting the India business earlier in November, when its president Bo Lingam said the businesses in India have been “draining cash” and causing much financial stress to the parent company. “Our businesses in Japan and India have been draining cash, causing the Group much financial stress. Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” President (Airlines) of AirAsia Group, Bo <a href="https://www.thehindu.com/business/Industry/airasia-india-draining-cash-reviewing-investment-in-joint-venture-malaysias-airasia-group/article33123081.ece">Lingam said in the statement in November</a>. The parent company AirAsia also ceased its Japan operations in October, citing “highly challenging operating conditions in Japan which have been aggravated by the COVID-19 pandemic.” The company has been unprofitable since its launch in 2014. In FY20 results, Tata Sons said that the pandemic completely eroded the AirAsia India net worth, and its auditor raised the red flag about the JV’s ability to continue. The Tata Group also invested nearly ₹490 crore in AirAsia India in FY20, while the JV posted a loss of ₹317 crore in the same period. SEE ALSO: <a href="https://www.businessinsider.in/politics/world/news/house-passes-bill-to-increase-600-stimulus-checks-to-2000/articleshow/80001571.cms" data-type="tilCustomLink">House passes bill to increase $600 stimulus checks to $2,000. It now goes to the Senate.</a> <a href="https://www.businessinsider.in/science/news/most-vaccine-skeptics-are-persuadable-and-will-get-the-covid-19-shot-says-a-nobel-prize-winner-who-studies-vaccine-hesitancy/articleshow/79995460.cms" data-type="tilCustomLink">Most vaccine skeptics are persuadable and will get the COVID-19 shot, says a Nobel prize-winner who studies vaccine hesitancy</a> <a href="https://www.businessinsider.in/stock-market/news/bitcoin-mining-stocks-surge-after-the-cryptocurrency-passes-28000-for-the-first-time/articleshow/79996286.cms" data-type="tilCustomLink">Bitcoin-mining stocks surge after the cryptocurrency passes $28,000 for the first time</a>

Days before the Air India bid, Tatas give AirAsia a ‘national’ tag

Low-fare airline <keyword id="1583080" type="COMPANY" weightage="20" keywordseo="AirAsia-India">AirAsia India</keyword> could soon see a change in ownership structure as the <keyword id="6355725" type="CITY" weightage="20" keywordseo="Tata-Group">Tata group</keyword> is in discussion to increase the conglomerate's stake in the airline. 
 "There are discussions going on (between <keyword id="46894" type="PERSON" weightage="20" keywordseo="Tata-Sons">Tata Sons</keyword> and AirAsia India) and I know the Tatas are keen to increase stake. They are happy with AirAsia's performance," an Economic Times report quoted senior executive at <keyword id="2202187" type="COMPANY" weightage="20" keywordseo="AirAsia-Berhad">AirAsia Berhad</keyword> as saying. 
 Requesting anonymity, a person familiar with the developments told The Economic Times: Tata Sons will likely acquire private investor <keyword id="230622" type="PERSON" weightage="20" keywordseo="Arun-Bhatia">Arun Bhatia</keyword>'s shares, reducing his holding to a "bare minimum." 
 
Currently, the Tatas own 30% stake in AirAsia India while AirAsia Berhad owns 49%. Arun Bhatia holds rest of the stake through his investment holding company, Telestra Tradeplace. 
 
When ET approached Bhatia to know more about this latest news, he said: "If the Tatas want to buy, I am ok to sell", without revealing much detail. 
 
If the news reports come true, this step will be a surprise to industry watchers who have been wondering about the Tata Group's future intentions with its two airline ventures in India. 
 Beside AirAsia India, Tata Sons owns 51% in Vistara, a joint venture with <keyword id="6368386" type="COMPANY" weightage="20" keywordseo="Singapore-Airlines">Singapore Airlines</keyword> in which the latter owns 49%. 
 
These airline ventures are seen as a realisation of Tata Sons chairman emeritus Ratan Tata's dreams of making it big in the Indian aviation industry. 
(Image: www.bangaloreaviation.com)

Tata Sons likely to become AirAsia India’s largest shareholder

<keyword id="1583080" type="COMPANY" weightage="20" keywordseo="AirAsia-India">AirAsia India</keyword>, which started its domestic operation in June this year, has posted a loss of around Rs 29 crore for the July-September quarter (Q2). The airline had come up with various lucrative offers to woo passengers. 
 Entrepreneur Tony Fernandes-led <keyword id="2202187" type="COMPANY" weightage="20" keywordseo="AirAsia-Berhad">AirAsia Berhad</keyword> reported the loss in its September quarter earnings report that was issued on November 19. AirAsia Berhad has a 49% stake in the Indian carrier. The other stakeholders in the Indian venture are Tata Sons and entrepreneur <keyword id="81616" type="PERSON" weightage="20" keywordseo="Amit-Bhatia">Amit Bhatia</keyword>. However, the Malaysian company did not reveal the revenues earned by AirAsia India. 
 
AirAsia Berhad revealed that its Indian subsidiary is planning to add more aircrafts to its existing fleet and will also come up with a second hub in Goa. “In India, they (AirAsia India) will likely add two more aircraft in December, bringing it to a total of four aircraft,” it said. 
 It is important to note that the passenger load factor recorded by AirAsia India has fallen sharply since June. According to the data available with the Directorate General of Civil Aviation (DGCA), AirAsia India’s load factor, which stood at 80% in June, fell to 69.8% in July, 73% in August, 68.7% in September and 76.2% in October. However, its competitors such as <keyword id="6354706" type="CITY" weightage="20" keywordseo="Indigo">IndiGo</keyword> and <keyword id="6358032" type="CITY" weightage="20" keywordseo="SpiceJet">SpiceJet</keyword> maintained a load factor of over 75% during the same period. 
 
AirAsia Berhad, which is also planning to fly to Delhi and Mumbai, is optimistic about the future growth of its Indian subsidiary. Now, it remains to be seen whether the carrier will post a profit in the next quarter.

AirAsia India Registers Q2 Loss At Rs 29 Crore

<keyword id="2343555" type="UNKNOWN" weightage="100" keywordseo="Low-cost-carrier-AirAsia-India">Low-cost carrier AirAsia India</keyword> has announced flights between Bangalore and Kochi from next month with a limited offer of an all-inclusive fare of Rs 500. 
 The airline will start daily operations from Bangalore to Kochi and vice versa from July 20, according to a spokesperson. <keyword id="1583080" type="COMPANY" weightage="100" keywordseo="AirAsia-India">AirAsia India</keyword> launched its first flight between Bangalore and Goa on June 12. 
 Commenting on the development, AirAsia India CEO <keyword id="1674460" type="UNKNOWN" weightage="100" keywordseo="Mittu-Chandilya">Mittu Chandilya</keyword> said, "We have done a complete analysis of our third destination and we are confident that we will be able to reach out to more first-time fliers." 
 
Announcing Kochi as the third destination within a few days of the launch, Chandilya said, "We will stand by our promise to deliver a quality product to our guests that promises value for their money. We are very much encouraged by the outstanding reception to our product and service." 
 The airline will be operating twice-a-day flights on the <keyword id="2343556" type="UNKNOWN" weightage="100" keywordseo="Bangalore-Chennai-Bangalore">Bangalore-Chennai-Bangalore</keyword> route from June 19. It will also operate daily flights between Bangalore and Goa. 
 AirAsia India is a 49:30:21 joint venture involving Malaysian low-cost carrier <keyword id="2202187" type="COMPANY" weightage="100" keywordseo="AirAsia-Berhad">AirAsia Berhad</keyword>, <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> and <keyword id="230622" type="PERSON" weightage="100" keywordseo="Arun-Bhatia">Arun Bhatia</keyword>'s <keyword id="1838341" type="UNKNOWN" weightage="100" keywordseo="Telstra-Tradeplace">Telstra Tradeplace</keyword>. 
 
Earlier, Chandilya said the airline would offer fares about 35% lower than the prevailing market rates to connect tier II cities. 
 
Other low-cost carriers operating in India include IndiGo, SpiceJet and GoAir, besides Air India Express and JetLite.

​AirAsia India To Fly Bangalore-Kochi For Rs 500

Mumbai, Apr 22 () Budget carrier AirAsia India is likely to resume operations with a fleet of 24 planes post lockdown, according to a source. Amid financial woes, the airline is also unlikely to induct any new aircraft this fiscal.A joint venture between Tata Sons and Malaysia's AirAsia Berhad, the Bengaluru-based airline has 29 Airbus A320 planes in the fleet, catering to 21 domestic destinations.All domestic and international commercial passenger flight operations have been suspended during the lockdown, which was initially imposed from March 25 to April 14 and thereafter extended till May 3. Soon after the extended date was announced on April 14, some of the Indian carriers announced that they would recommence flight operations in a phased manner from May 4 and had started taking bookings also.The government later directed them not to do so and wait till further orders on the issue."The travel demand is not going to come back any time soon. We are expecting initially it would be the stranded people in different state capitals and cities of the country, who have been waiting to return to their original places, will be rushing to the airport whenever lockdown ends and air services are allowed to operate," said a source from AirAsia India. Since it would take a lot of time for even the domestic traffic to return to normal, carrying out operations with the entire fleet will not be financially prudent, he said."Considering these factors, we are looking to put only 24 aircraft in service with reduced frequencies when we restart operations after the lockdown. And once the traffic starts picking up, we will also ramp up both the fleet and the services," the source said.AirAsia India spokesperson refused to comment on queries. According to a recent survey by global aviation and aerospace consultancy ICF, the aviation industry may take six months to two years to recover from the severe blow dealt by the coronavirus pandemic.Last week, AirAsia India had said, " we look forward to resuming our operations soon, once we receive the appropriate approvals. Preparations are underway to implement and strictly adhere to the social distancing guidelines laid out by the government across all facets of our operations as the safety and security of our guests and crew is our top priority."The source also said the airline is unlikely to induct any new aircraft this fiscal owing to an expected low demand, "if market dynamics changes and there is any sudden spurt in domestic traffic then it would prefer subleasing from the parent AirAsia Berhad than going for fresh deliveries."The airline, which narrowed its losses to Rs 123.35 crore in the December quarter of the previous fiscal, had added nine planes in the fleet to take total number of aircraft to 28 as on December 31, 2019. Since then it has taken delivery of only one aircraft in January this year.In late January, European aviation major Airbus had announced it was deferring aircraft deliveries to the Indian customers through March 9. However, later in March itself coronavirus pandemic hit the world, bringing the aviation industry to a near halt. ANUANU

AirAsia India likely to restart operations with 24 aircraft post lockdown

<ul><li>The AirAsia Group Berhad sold <a href="https://www.businessinsider.in/business/corporates/news/tata-group-hikes-its-stake-in-airasia-india-buys-additional-32-67-stake-for-37-66-million/articleshow/80011503.cms">32.67% of its stake in the Indian subsidiary to Tata Sons for $37.66</a> million. </li><li>Analysts believe that the Tata Group got a 20% discount on the airline’s value.</li><li>Air Asia wasn’t doing very well even before the pandemic. It has been making losses, and its balance sheet has never been strong.</li></ul>The AirAsia Group Berhad on December 29 sold <a href="https://www.businessinsider.in/business/corporates/news/tata-group-hikes-its-stake-in-airasia-india-buys-additional-32-67-stake-for-37-66-million/articleshow/80011503.cms">32.67% of its stake in the Indian subsidiary to their joint venture partner Tata Sons for $37.66</a> million (₹276 crore). Analysts believe that the Tata Group got a 20% discount on the airline’s value. One may argue that the prospects for airlines may have been hit by the pandemic, but on the other hand, the market value of Air Asia India’s peers like IndiGo and SpiceJet has doubled since the pandemic broke out in March. <div type="image" title="Spicejet and Indigo" msid="80101441" hostid="261"></div> Why did AirAsia sell its stake at such a discounted price? Multiple factors may have played into the discount on Air Asia. “Either AirAsia has a significant amount of liabilities, which you know is yet not known since this year COVID has been a big impact on the airline sector. Second, the prospect of recovery which the Tatas see within AirAsia India might not be that great,” Ansuman Deb, a research Analyst at ICICI Securities told Business Insider. The Malaysian parent was also desperate for some cash. While selling its stake AirAsia Group President (Airlines), Bo Lingam also highlighted that “this transaction is in line with our initiatives towards reducing cash utilisation for the Group and will allow us to use cash to grow market share in our core markets in Asean, particularly in Malaysia, Thailand, Indonesia and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam.” <div type="image" title="Air Asia" msid="80101471" hostid="261"></div> More importantly, Air Asia wasn’t doing very well even before the pandemic. It has been making losses, and its balance sheet has never been strong. “In terms of operations also the airline barely has 6% market share — then the legal implications also vary — When it comes to flying internationally, they are not allowed to do so at this point of time, so there are a variety of reasons that led to this,” said another analyst who didn’t want to be named citing compliance reasons. Air Asia India in 2018 was accused of bribery and violation of the country’s aviation laws, which the company refuted. There are other legal tangles that AirAsia India has been caught in, like, <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/give-ownership-undertaking-to-fly-abroad-govt-to-airasia-india/articleshow/71283862.cms">ownership undertakings</a> to fly abroad to <a href="https://www.business-standard.com/article/companies/dgca-investigating-airasia-india-after-pilot-alleges-safety-violations-120061501729_1.html">DGCA’s investigation</a> on safety violations. Now, that begs the question why did Tatas buy more stake in a troubled airline? Tatas preparing AirAsia India to bid for Air India <div type="image" title="Air India" msid="80101481" hostid="261"></div> The Tata Group wants to buy out India’s national carrier, Air India, and they planned to bid for it via Air Asia India. There are many within the ruling establishment in New Delhi and their political affiliates, who want <a href="https://theprint.in/india/sell-air-india-only-to-an-indian-entity-rss-tells-modi-govt/356996/">Air India to be sold to an Indian company</a>, and not to a foreign one. The government earlier this week had removed the <a href="https://timesofindia.indiatimes.com/business/india-business/government-removes-january-5-deadline-for-intimating-qualified-bidders-for-air-india/articleshow/80044767.cms">January 5 deadline</a>, for notifying qualified bidders for Air India. The transaction adviser will now reach out to the qualified parties that submitted their expression of interest (EOI) for the airline. According to the ICICI Securities report, “If Tatas successfully acquire Air India and consolidate Vistara and AirAsia India under its brand, the industry will convert from a 6 to 4 player industry comprising Tata group. IndiGo, SpiceJet and GoAir.” So are IndiGo and SpiceJet overpriced? Similarly, the hope of recovery post the advent of a vaccine ⁠— along with the return of revenge travel⁠ and the struggles of GoAir— and the expectation of fewer competitors, eventually, have led the stocks of IndiGo and SpiceJet to double since the crash in March 2020. “The market has taken all the positives at this point. Now we will have to wait and see if they deliver it up. So IndiGo might be best at something of this sort or probably reaching an overvalued territory,” warned the analyst seeking anonymity. In comparison, Spicejet shifted its focus to carrying more cargo during the pandemic, when the number of passengers dried up. “I think it is fairly valued, and there’s some upside left (in the stock),” he added. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-says-it-has-absolutely-no-plan-to-enter-contract-farming-urges-government-to-stop-vandalism-amidst-ongoing-farmers-protests/articleshow/80091733.cms" data-type="tilCustomLink">Reliance says it has 'absolutely no plan' to enter contract farming — urges government to stop vandalism amidst ongoing farmers' protests</a> <a href="https://www.businessinsider.in/stock-market/news/big-money-chasing-bitcoin-takes-the-cryptocurrency-to-a-new-record-high-of-34000/articleshow/80090730.cms" data-type="tilCustomLink">Big money chasing Bitcoin takes the cryptocurrency to a new record high of $34,000</a>

Tatas got AirAsia stake at a 20% discount while IndiGo and SpiceJet’s value has doubled since pandemic broke out

<ul><li>The deadline for final submission of bids for India's national carrier is August 31.</li><li>As it stands right now, Tata Group is the only interested party.</li><li>Tata Group already has stakes in airlines, Air Asia India and Vistara, which is in joint venture with Singapore Airlines. </li></ul>The buzz in aviation circles is getting louder that the Tata group could be in the Air India's cockpit as early as the New Year, if it is the sole eligible bidder for India's national carrier. If the Tata bid is put in on or before the final submission date of August 31 and as it looks at the moment, Tata will likely be the sole eligible bidder. Thereafter, if the Tata bid is deemed accepted, the 90 day period for handover shall commence and end by November 30 or at the most, by December 31. So, one possible scenario is for Tata to take control of Air India by January 1, 2021. An IANS query sent to Tata Sons went unanswered. The Tata group, which already has a footprint in the airlines business, has shown interest in acquiring Air India, which at one point of time was under the Tata umbrella. While the other bidders are not known yet, globally, airlines are under severe stress due to the Covid-19 pandemic and resultant disruption on air travel and tourism. Tata is widely believed to emerge as the sole bidder for Air India and the salt to software conglomerate is likely to place a bid before August 31, the last date for bids for Air India, which the government has repeatedly said it will not be extended. The group already has an airline venture in Vistara and it is not yet clear as to how or if it will consolidate the airline ventures including Vistara, Air Asia and the possible acquisition of Air India. According to reports, the Tata group has already begun due diligence and is likely to put in a formal bid soon. On the ensuing structure for the airline business, there is speculation that Tata is planning to merge its existing stake in AirAsia with Air India into a single entity. Air India has been passing through a critical financial condition from much before the Covid-19 onslaught. The crippling effect of the pandemic, especially in the aviation sector, has further brought its finances to a precarious position. Recently, its pilots and other employees are on the warpath as Air India has laid off employees and started a Leave Without Pay (LWP) scheme. From <keyword id="150145" type="COMPANY" weightage="20" keywordseo="Tata-Airlines">Tata Airlines</keyword> and Air India to Vistara and AirAsia India, the Tata group has been an important part of the growing aviation sector in India. From Tata Air Lines and the long-since nationalised Air India to strategic joint ventures with AirAsia Berhad and Singapore Airlines (SIA) for AirAsia India and Vistara, respectively, Tata has been present in the aviation sector. The two joint venture airlines operate independently with their respective business models - low-cost (AirAsia) and full-service (Vistara). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/unscheduled-transit-flights-cannot-land-for-specific-hours-at-delhi-airport-on-aug-15/articleshow/77541736.cms">Unscheduled transit flights cannot land for specific hours at Delhi airport on Aug 15</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/unscheduled-transit-flights-cannot-land-for-specific-hours-at-delhi-airport-on-aug-15/articleshow/77541736.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/wework-gets-funds-from-softbank-while-india-franchise-offers-discounts/articleshow/77540098.cms">WeWork gets a new $1.1 billion cheque from SoftBank while it attempts resurrection – its India franchise is now offering discounts and a global all-access pass</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/wework-gets-funds-from-softbank-while-india-franchise-offers-discounts/articleshow/77540098.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/eicher-motors-registers-first-ever-net-loss-of-55-crores-in-at-least-a-decade/articleshow/77526012.cms">Eicher Motors registers first-ever net loss of ₹55 crores in at least a decade</a>

Tata group may take Air India's control by Jan 1 if it is sole eligible bidder

<ul><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> Chairman N Chandrasekaran said he will get his team to evaluate a bid for <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>. </li><li>The once-Tata owned Air India today has a massive debt of ₹58,351 crore. </li><li>Meanwhile, both of Tata’s current airlines – <keyword id="2467342" type="PERSON" weightage="20" keywordseo="Vistara">Vistara</keyword> and AirAsia – reported losses for FY19. </li></ul>One of India’s biggest business conglomerate Tata Group might consider bidding for the struggling Air India. In an <a href="https://timesofindia.indiatimes.com/business/india-business/will-ask-my-team-to-look-at-bidding-for-ai-tata-group-chief/articleshow/71883484.cms">interview with TOI</a>, Tata Group Chairman N Chandrasekaran said that he will get his team to look into the matter. “Ideally it should be a Vistara decision, not a Tata Sons decision. I’m not going to run a third airline (in addition to Vistara and AirAsia) unless we merge. There are issues. I will never say yes or no. I don’t know,” he told TOI. Interestingly, Air India was run by the Tata Group before the Indian government acquired a 49% stake in the airline in 1948. Tata Group to bid on Air India would expand its exposure to the airline industry. Two of its own airlines – Vistara and AirAsia are running in losses. In the financial year ending March 2019, Vistara’s<a href="https://www.business-standard.com/article/companies/vistara-loss-doubles-to-rs-831-crore-amid-tough-operating-environment-119081401877_1.html"> losses</a> doubled to ₹831 crore. Vistara is a joint venture between the Tata group and Singapore Airlines. Meanwhile, <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> too is struggling to keep up. Its <a href="https://www.financialexpress.com/industry/air-asia-india-losses-rise-five-fold-in-fy19/1719013/">losses</a> amounted to ₹670 crore, almost five times over its losses in the previous year of ₹125 crore. Tata Group runs AirAsia India in a joint venture with Malaysia-based AirAsia Berhad. For FY19, Air India too posted a massive <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/air-india-posts-rs-4600-cr-operating-loss-in-2018-19-aims-operating-profit-this-fiscal/articleshow/71136113.cms">operating loss</a> of ₹4,600 crore, while its net loss stood at ₹8,400 crore. Air India, which has been struggling to find a bidder after the government said that it plans to sell 100% stake in it. It has a massive debt of ₹58,351 crore and recently state-owned oil companies <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/pay-monthly-or-will-cut-fuel-supply-at-6-airports-from-oct-18-oil-companies-to-air-india/articleshow/71525811.cms?from=mdr">sent a letter</a> asking them to pay up dues or they will stop supplying aviation turbine fuel (ATF).

Tatas may look at bidding for Air India even as its two airlines strap on losses

<div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="REUTERS/Samsul Said" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53cd394c69beddcb248b4567-960/malaysia-airlines-boeing-747-400-and-737ng.jpg"></a>REUTERS/Samsul Said</div></div></div>With this month's <a href="http://www.businessinsider.com/category/mh17">downing of MH17</a> and the <a href="http://www.businessinsider.com/category/malaysia-airlines-flight-370">March disappearance of MH370</a>, it seems that if Malaysia Airlines didn't have bad luck, it wouldn't have any luck at all. 
It is incredibly rare for two catastrophic events to happen to the same airline in such a short period of time, Chris Sloan, president of aviation news organization Airchive, told Business Insider.
Malaysia's recent tragedies have indelibly stained the reputation of an airline that has one of the best safety records in the world. Until this year, Malaysia Airlines had experienced only two fatal accidents in 68 years of operation. In fact, the last 19 years have been fatality-free. And the airline regularly receives stellar marks for service and comfort from airline ratings agency Skytrax. 
Despite high marks from passengers, the airline's financial performance over the years has been dismal. With the Malaysian government holding a majority stake in the airline through its holding company, Penerbangan Malaysia Berhad, Malaysia Airlines has become a veritable black hole that sucks in money. Multiple government bailouts over the past decade were required keep the carrier aloft.
In the past three years, the airline has lost an astonishing $1.2 billion, <a href="http://www.businessweek.com/articles/2014-03-24/malaysia-airlines-was-in-trouble-long-before-flight-370" target="_blank">reports Businessweek</a>. <a href="http://centreforaviation.com/analysis/malaysia-airlines-1q-loss-widens-capacity-growth-to-be-adjusted-followed-by-restructuring-168388?_ga=1.179130983.2134932077.1405691283" target="_blank">And according to the CAPA Centre for Aviation</a>, Malaysia Airlines lost a further $140 million in the first quarter of this year alone, with business down 59%. In other words, the airline hasn't been profitable for years. And it's unlikely to achieve profitability anytime soon.
With the loss of consumer confidence compounding the company's financial troubles, what's in store for Malaysia Airlines? Here are three ways the company could turn around.
<h3>1. Rebrand</h3>
A potential solution is to simply rebrand the airline: Take the existing company and relaunch it with a new logo and a fresh coat of paint. This strategy was successful for both ValuJet and Swissair, though under different circumstances.
<div class="KonaFilter image-container display-table float_left"><div><div class="image on-image">REUTERS/Edgar Su</div></div></div>ValuJet was a budget airline that rebranded as AirTran Airways after a fatal crash and subsequent financial losses in the mid-1990s. 
While <a href="http://www.midtod.com/98autumn/airline.phtml" target="_blank">the company's transformation </a>following its merger with AirTrain was nothing short of spectacular, its situation differed greatly from Malaysia Airlines in both complexity and symbolism. 
At the time of ValuJet's rebranding, it was a 5-year-old airline with a small, aging fleet of 15 short-range DC-9/MD-80 series jets. 
Malaysia Airlines, on the other hand, is nearly 70 years old, with a fleet of 100 aircraft, ranging from smaller Boeing 737s to 500-seat Airbus A380 superjumbos. As Malaysia's flag carrier, the airline is also a symbol of national identity, serving as a flying ambassador for the country. 
Swissair's rebranding also offers some parallels. Swissair, known for its high-quality service and strong financial performance, was referred to as the "flying bank" for many years. <a href="http://news.bbc.co.uk/2/hi/programmes/crossing_continents/1677085.stm" target="_blank">However, by the late 1990s, after a decade of poor financial decision making</a>, the Swiss national airline was struggling to deal with massive amounts of debt. Its grim financial situation was worsened by the crash of Flight 111 off the coast of Nova Scotia in 1998.
By 2001, the company announced it would have to liquidate its assets. SWISS International Airlines arose from the ashes, and has since been rated as one of the best in the world. The success of SWISS shows it's possible to rebrand a nation's flag carrier and recover financially. However, SWISS had two advantages that Malaysia Airlines does not: Consumer confidence in the Swissair brand wasn't fatally tarnished by the company's troubles, and Switzerland's aviation tradition was well-established. 
<div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Wikimedia Commons/ Steven Byles" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53cd642fecad048f4e2ede0b-960/hb-jhg_a330-343e_swiss_(5461081364).jpg"></a><a href="http://en.wikipedia.org/wiki/Swiss_International_Air_Lines#mediaviewer/File:HB-JHG_A330-343E_Swiss_(5461081364).jpg">Wikimedia Commons/ Steven Byles</a></div></div></div>So Malaysia Airlines may have to do more than simply rebrand-it may need a top-to-bottom overhaul.
Korean Air's revamp in the early 2000s offers some context, says Airchive's Sloan. <a href="http://www.washingtonpost.com/local/trafficandcommuting/lack-of-cockpit-communication-recalls-1999-korean-airlines-crash-near-london/2013/07/08/0e61b3ca-e7f5-11e2-a301-ea5a8116d211_story.html" target="_blank">In 1999, the airline suffered three crashes</a> in six months. Two were fatal.
Instead of simply rebranding, Korean Air made major internal changes. The airline brought in Lufthansa to retrain its pilots, changed its corporate culture, and relaunched. Malaysia will have to follow a similar playbook, Sloan says, adding, "they have to show the world they learned their lesson."
<h3>2. Nationalize</h3>
There have been calls from inside Malaysia for the government to dump its investment in its money-losing airline. However, Sloan believes the opposite is likely to happen: Not only will the government pump more money into the airline, it will also nationalize it, he says. No country wants to lose such a prominent international symbol at a time of weakness. 
Nationalization could provide the airline with a temporary financial safe haven, buying time to execute the sweeping changes needed to ensure long-term viability. <a href="http://www.abc.net.au/7.30/content/2001/s382720.htm" target="_blank">In 2001, the New Zealand government nationalized Air New Zealand and injected more than $700 million</a> into the company after the airline's failed merger with Ansett Australia drained its coffers. The nationalization allowed Air New Zealand to make drastic shifts in its business model. Eventually, that airline returned to profitability. 
<h3>3. Merge</h3>
If the Malaysian government does not step up to the plate, another option for Malaysia Airlines is to seek a merger. In the month before the crash of MH17, <a href="http://www.vox.com/2014/7/17/5913523/malaysia-airlines-stock-decline-air-asia-competition" target="_blank">rumors sprang up about cash-rich Etihad Airways' interest</a> in acquiring shares of the airline. But since the crash, the Abu Dhabi-based carrier has distanced itself from the rumors. 
<div class="KonaFilter image-container display-table float_left"><div><div class="image">AP</div></div></div>One prospective partner for Malaysia Airlines may very well be a competitor: AirAsia, a low-cost carrier that also operates out of Kuala Lumpur.
In the last 15 years, CEO Tony Fernandes has taken AirAsia from a tiny, debt-ridden operation to a financial juggernaut. Much of its explosive growth has been at the expense of more established regional competitors.
Now, Fernandes wants to jump into the long-haul game with the company's AirAsiaX brand. In fact, the airline purchased 50 Airbus A330neo long-haul airliners at this month's Farnborough Airshow. 
To remove a local competitor and bolster its transcontinental operation, AirAsia may be willing to take on Malaysia Airlines' international assets for a reasonable price. It's not unheard of for a younger regional airline to swallow up a large international carrier. In 2007, <a href="http://news.bbc.co.uk/2/hi/business/6505207.stm" target="_blank">Brazil's Gol Airlines purchased the remnants </a>of the country's bankrupt national carrier, Varig. After the merger, Varig-once Brazil's preeminent international airline-now operates as an arm of Gol Airlines. 
In 2012, <a href="http://www.reuters.com/article/2012/05/02/mas-airasia-idUSL4E8G21LH20120502" target="_blank">Malaysia Airlines and AirAsia actually agreed to $364 million stock swap </a>that was nixed by pressure from Malaysia Airlines' union. With the airline confronting an unprecedented crisis and AirAsia enjoying a meteoric rise, it may make sense for the airlines to revisit their past agreement.

You Searched For "AirAsia Berhad" and got 9 results

Days before the Air India bid, Tatas give AirAsia a ‘national’ tag

Navdeep Yadav

Tata Sons likely to become AirAsia India’s largest shareholder

BI India Bureau

AirAsia India Registers Q2 Loss At Rs 29 Crore

BI India Bureau

AirAsia India To Fly Bangalore-Kochi For Rs 500

BI India Bureau

AirAsia India likely to restart operations with 24 aircraft post lockdown

PTI

Tatas got AirAsia stake at a 20% discount while IndiGo and SpiceJet’s value has doubled since pandemic broke out

Navdeep Yadav

Tata group may take Air India's control by Jan 1 if it is sole eligible bidder

IANS

Tatas may look at bidding for Air India even as its two airlines strap on losses

Sanchita Dash

Three Ways Malaysia Airlines Can Deal With Its Uncertain Future

Benjamin Zhang

Popular Keywords

Buying Guides

You Searched For "AirAsia Berhad" and got 9 results

Days before the Air India bid, Tatas give AirAsia a ‘national’ tag

Navdeep Yadav

Tata Sons likely to become AirAsia India’s largest shareholder

BI India Bureau

AirAsia India Registers Q2 Loss At Rs 29 Crore

BI India Bureau

​AirAsia India To Fly Bangalore-Kochi For Rs 500

BI India Bureau

AirAsia India likely to restart operations with 24 aircraft post lockdown

PTI

Tatas got AirAsia stake at a 20% discount while IndiGo and SpiceJet’s value has doubled since pandemic broke out

Navdeep Yadav

Tata group may take Air India's control by Jan 1 if it is sole eligible bidder

IANS

Tatas may look at bidding for Air India even as its two airlines strap on losses

Sanchita Dash

Three Ways Malaysia Airlines Can Deal With Its Uncertain Future

Benjamin Zhang

Popular Keywords

Buying Guides

AirAsia India To Fly Bangalore-Kochi For Rs 500