But this comes with a massive problem, the massive problem is the massive losses AirAsia has been logging in. AirAsia has an accumulated loss of 325.69 Million Dollars. AirAsia has had a hard time coping with the pandemic and thatu2019s clearly visible in the numbers. Losses have been increasing yoy by 42% while its revenue grew by 39%, on top of that the 67% hike in aviation fuel has impacted AirAsiau2019s overall numbers. The situation has grown to be so bad that AirAsia has begun to shrink its operations and even returned seven Airbus A320 airplanes,
Currently, AirAsia just has 26 Airbus A320s operational.
With such weak conditions for AirAsia, Tata might have to write off the massive 325.69 Million Dollars losses. According to reports Tata will have to make provisions for these losses before the merger happens. As of now, there have been no decisions taken by Tata to write off the losses or not but it is evident that Tata is trying to build an airline brand that is recognised in India and outside as a cheap air travel provider.
