CHENNAI: Air India is seeking about ₹10,000 crore ($1.1 billion) in fresh financial support from its owners, Tata Sons and Singapore Airlines, as it grapples with the fallout from the Ahmedabad air crash earlier this year and a series of operational and financial challenges, Bloomberg reported on Friday.
According to reports, the airline has approached both shareholders for additional funding in proportion to their stakes—Tata Sons holds nearly 75% in Air India, while Singapore Airlines owns around 25%. The proposed infusion could take the form of equity or an interest-free loan, with discussions still underway.
The request comes as Air India continues to face pressure from multiple fronts. The June crash of its Boeing 787 aircraft departing from Ahmedabad dealt a severe blow to the airline’s image and finances. The incident triggered intense regulatory scrutiny and forced a fleet-wide safety audit, resulting in temporary curbs on some international operations.
Compounding the problem, ongoing airspace restrictions following regional tensions have led to longer flight routes and higher operational costs. These disruptions, coupled with delays in the carrier’s turnaround targets, have eroded profitability. Air India’s original plan to achieve break-even by March 2026 is now uncertain.
The proposed capital support is expected to fund critical upgrades in engineering, safety, and maintenance systems, and to build in-house maintenance and repair capabilities—areas seen as essential for restoring confidence and improving efficiency.
For Tata Sons and Singapore Airlines, the funding decision will test their long-term commitment to the Air India revival plan. While Tata faces the larger financial burden, both owners share the challenge of stabilizing the airline in a highly competitive domestic market dominated by low-cost rivals.
Analysts say a timely capital infusion could help Air India regain operational stability and credibility after a turbulent few months. However, any delay or partial support could stall its recovery and prolong financial stress.
Overall, the funding request underscores the depth of Air India’s ongoing transformation challenge, as it seeks to rebuild after the crash and strengthen its position in an increasingly crowded aviation market.
