Air India is seeking around $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, as the airline faces mounting losses and a costly turnaround, according to a Reuters report.
The funding request comes months after Air India and its budget arm, Air India Express, reported combined losses of $2.33 billion for the financial year ended March. The losses were more than double the previous year’s figure.
The proposed investment could become one of Air India’s largest publicly reported funding requests since Tata Group took control of the former state-owned carrier in 2022. Discussions are ongoing, and the funding could be provided in phases.
Singapore Airlines, which owns about 25% of Air India, said it was working with Tata Sons to support the airline’s transformation but declined to comment on its financial position.
Air India’s turnaround has been affected by Pakistan’s airspace restrictions on Indian airlines, disruptions linked to the US-Israel conflict with Iran and the aftermath of last year’s fatal crash that killed 260 people.
Tata Sons Chairman N Chandrasekaran has said transforming Air India could take up to a decade. The airline is also working to modernise its fleet, overhaul legacy systems and reduce costs.
Air India has reportedly sought to defer deliveries of hundreds of aircraft ordered from Airbus and Boeing as it focuses on controlling losses.
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