The planned merger of the two low-cost carriers comes with red flags for the Tata group’s grand plans for its aviation business under Air India.
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The Ajay Singh-led airline may have claimed it has turned profitable, or has a positive net worth for the first time in a decade, but a closer look suggests otherwise.
The past two months have seen the founder and chief executive of the low-cost airline battle intense regulatory scrutiny and suspension of senior executives. While a smart management move has brought some peace, the airline’s troubles are far from over.
The finance minister has stated that banks have recovered Rs 14,131 crore by selling Mallya’s assets. However, the businessman has a number of other hurdles to cross before he can come back to India.