US starts returning staff to Middle East embassies

Air India is requesting approximately $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, amidst a series of financial challenges impacting its operations. This equity request marks one of the largest shareholder contributions since the Tata Group took control of the airline in 2022, highlighting the sector's financial strain.

The request follows the airline's announcement of a record annual loss, with combined losses from Air India and its budget subsidiary, Air India Express, reaching $2.33 billion in the fiscal year that ended March. This loss figure is more than double the previous year's, further straining Singapore Airlines' earnings. Financial difficulties for Air India are compounded by airspace restrictions imposed by Pakistan and disruptions caused by the ongoing war in the Middle East, which have severely impacted its international network.

Additionally, the airline is grappling with the fallout from the deadly crash in Ahmedabad last year, which claimed 260 lives. These pressures come as Tata Sons Chairman N. Chandrasekaran, who has been at the helm since the acquisition, prepares to step down in February after months of clashes with the airline's controlling charitable trust.

Chandrasekaran has estimated that Air India's turnaround may require up to a decade, citing supply-chain issues, the need to overhaul legacy systems, corporate culture, and the fleet. The airline has also taken steps to defer jet deliveries from Airbus and Boeing to cut costs and reduce losses. Air India's financial situation is expected to necessitate further capital injections in the coming years.