Divestment-bound Air India reports Rs 7,017 crore loss for FY21

Air India reported Rs 7,017 crore loss during the financial year 2020-21 amid travel restrictions and flight bans due to the Covid-19 pandemic.

The loss after tax stood at Rs 7,017 crore in the year through 31 March 2021, down from a Rs 7,766 core loss recorded in the previous year, an Air India filing said on Thursday.

Air India’s revenue from operations dropped at Rs 10,343 core in FY21 from Rs 27,711 crore year ago.

The Board of Directors of the company at its meeting held on October 14, 2021 has inter alia approved the Audited Standalone Financial Results of the Company for the year ended March 31, 2021.

Air India's disinvestment exercise is likely to complete within the next 10 weeks and only necessary revenue and capital expenses should be carried out till then, Civil Aviation Secretary Rajiv Bansal said on Thursday. 

Bansal, who also holds the charge of Chairman and Managing Director of Air India, in an order said the airline's disinvestment process is in its final stages and letter to intent has been already issued to the Tata group.

On Friday, the government had announced the sale of the national carrier to the salt-to-software conglomerate Tata Group at an enterprise value of Rs 18,000 crore. 

With this, Air India will return to the Tatas after 68 years. Along with the brand and the slots of the debt-ridden state-owned airline, the Tatas will get the low-cost subsidiary Air India Express and a 50 per cent stake in ground handling firm AISATS.

Of the bid amount of Rs 18,000 crore, the Tatas will pay Rs 2,700 crore in cash, while taking the remaining Rs 15,300 crore as debt.