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Indian airline Air India is requesting approximately $1.5 billion in additional equity from its owners, Tata Sons and Singapore Airlines, according to sources familiar with the situation. This request follows the airline's announcement of a record annual loss, marking another significant funding request since Tata took control of the carrier in 2022. The proposed funding would be one of the largest publicly disclosed shareholder contributions for Air India since the overhaul began.

Air India and its budget subsidiary, Air India Express, reported combined losses of $2.33 billion during the fiscal year that ended in March, more than double the losses incurred in the previous year. These financial challenges have been exacerbated by a series of setbacks, including disruptions to international operations due to geopolitical conflicts and airspace restrictions, as well as the airline's ongoing efforts to revamp and modernize its fleet and infrastructure.

The funding request is being made immediately, although it is expected to be provided in stages. Singapore Airlines, which holds a 25% stake in Air India, is required to contribute its share of the proposed investment for the deal to proceed. Discussions regarding the funding are ongoing, and no decision has been finalized as of yet.

Air India's management is led by Tata Sons Chair N. Chandrasekaran, who is set to retire in February following months of conflicts with the group's controlling charitable trust. Chandrasekaran has stated that the airline's turnaround could take up to a decade, citing persistent supply-chain issues and the need to overhaul the carrier's legacy systems, culture, and fleet.

Air India has been actively postponing deliveries of new aircraft as Tata seeks to reduce operational costs and rectify its substantial losses. The airline is anticipated to continue seeking capital injections in the years to come.