MUMBAI: Even as AirAsia India reels under allegations of financial bungling, its large payouts to Malaysian parent AirAsia Berhad is likely to add to its worries, apart from setting back the prospects of growth and profitability.
Numbers from the Malaysian carrier’s latest annual report and filings with Kuala Lumpur stock exchange show that for every two rupees AirAsia India earned in 2015, it had to pay its parent airline a rupee, reports The Economic Times.
Many of these transactions — primarily aircraft lease rentals and maintenance reserve payments — are done at higher-than-market rates, according to former employees, industry watchers and finance chiefs of rival carriers.
AirAsia Berhad and salt-to-software conglomerate Tata Sons own 49% each in AirAsia India. The remaining 2% is owned by chairman S Ramadorai and director R Venkataramanan.
Detailed sets of questions sent to AirAsia India remained unanswered. When contacted, AirAsia Berhad and Tata Sons said all questions pertaining to AirAsia India should be sent to the airline.
AirAsia Berhad’s annual report showed that in January-December 2015, it earned 67.55 million RM (Rs 108 crore) as operating lease rentals from AirAsia India. It earned another 23.27 million RM (Rs 37.19 crore) as income on maintenance reserves. In addition, 64.65 million RM (Rs 103.3 crore) was due from AirAsia India, under related party transactions.