Air India Requests $1.5 Billion Funding from Tata and Singapore Airlines
Air India is seeking $1.5 billion in fresh equity from its shareholders, Tata Sons and Singapore Airlines, following a record loss of $2.33 billion. This request comes more than a year after Tata Sons halted additional equity injections into the airline, highlighting the challenges in its turnaround efforts. The funding, reported by Reuters, would be one of the largest shareholder funding exercises since Tata Group regained control of the airline in 2021.
Phased Capital Injection
The $1.5 billion will be injected in phases, according to sources familiar with the matter. Singapore Airlines, which owns a 25% stake in Air India, is expected to contribute its share. Tata Sons had previously paused further equity support through the fiscal year ending March 2026. Its investment in Air India remained unchanged at Rs 22,618 crore for the fiscal year, indicating no new equity was infused during that period.
Financial Struggles and Future Plans
Air India’s funding needs were discussed during a Tata Sons board meeting in June, chaired by N Chandrasekaran. The airline is facing mounting losses and increasing capital requirements as it implements a multi-year transformation program. In FY2026, Air India reported a loss of Rs 22,238 crore, more than double the previous year’s deficit and the largest among Tata Group companies. With Tata Sons maintaining its equity exposure, Air India likely relied on borrowings while assessing the necessary shareholder support.
Chandrasekaran has indicated that Air India’s turnaround could take up to a decade, citing supply-chain disruptions and the need to overhaul legacy systems and fleet. The airline has also sought to defer deliveries of hundreds of jets ordered from Airbus and Boeing to mitigate losses.
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