Air India seeking US$1.5 billion from owners Tata, Singapore Airlines: sources
It comes months after the carrier and its budget unit posted a record annual loss of US$2.33 billion
Air India is seeking approximately US$1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines, following a record annual loss of US$2.33 billion in the fiscal year ending March, according to two sources familiar with the matter. The request, one of the largest publicly reported funding demands since Tata took control of the airline in 2022, underscores the challenges Air India faces amid its multi-billion-dollar revamp, including fleet refurbishment.
The losses have also impacted Singapore Airlines' profits, with the Indian carrier requesting the funds immediately, though they are likely to be provided in installments. Discussions are ongoing, and a decision has not been made. SIA, which holds a 25% stake in Air India, stated it is cooperating with Tata Sons in supporting the airline's transformation program but declined to comment on its finances.
Air India's funding request coincides with Tata Sons chair N Chandrasekaran's impending departure in February, following disagreements with the group's controlling charitable trust over the airline's financial performance. The request also comes amid various setbacks, such as Pakistan's airspace ban on Indian carriers, disruptions due to the US-Israeli conflict with Iran, and the aftermath of a deadly crash that claimed 260 lives last year.
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