Air India seeks $1.9 billion from owners Tata, Singapore Airlines as losses mount, sources say

Delhi - Air India is requesting approximately US$1.5 billion (S$1.9 billion) in additional equity from its majority owners, Tata Sons and Singapore Airlines, following a record annual loss, according to two sources familiar with the situation. This request marks one of the airline's largest publicly disclosed funding demands since Tata took control of the carrier in 2022, underscoring the considerable challenges Air India faces in its ongoing multibillion-dollar transformation program.

The carrier, along with its budget subsidiary Air India Express, incurred combined losses of US$2.33 billion in the fiscal year concluding March, more than double the losses from the previous year. Air India and its parent company Tata Sons are currently in negotiations to finalize the funding arrangement, with Singapore Airlines set to contribute its share in tranches.

The funding request stems from a range of factors, including Pakistan's airspace restrictions on Indian carriers, disruptions to Air India's international network due to the Iran-Israel conflict, and the aftermath of a fatal crash in 2025 that claimed 260 lives. The airline's leadership, Tata Sons chairman N. Chandrasekaran, anticipates that the transformation process could span up to a decade, citing ongoing supply-chain issues and the need to overhaul the airline's legacy systems, culture, and fleet.