AI seeks Rs 10,000 cr funding from Tata Sons, Singapore Airlines amid losses

Air India is seeking financial support of around Rs 10,000 crore ($1.14 billion) from its owners Tata Sons and Singapore Airlines, as the carrier grapples with heavy losses, operational challenges, and the aftermath of a fatal crash earlier this year, according to a report by Bloomberg citing sources familiar with the matter.

The funding request reportedly covers plans to upgrade systems and services as well as build in-house engineering and maintenance divisions, part of Air India’s broader effort to strengthen operational resilience and reduce external dependencies. The airline has not issued an official statement on the report.

Tata Sons holds a 74.9 per cent stake in Air India, while Singapore Airlines owns the remaining 25.1 per cent.

The move comes amid reports that the carrier is expected to incur losses worth Rs 4,000 crore following airspace restrictions imposed by Pakistan earlier this year after military tensions with India disrupted international flight routes.

Air India’s Managing Director and Chief Executive Officer Campbell Wilson recently addressed the airline’s operational challenges in light of the June 12 crash of Flight AI-171, which claimed 241 lives when a Boeing 787 Dreamliner travelling from Ahmedabad to London crashed shortly after take-off.

Speaking at the Aviation India 2025 summit, Wilson said that the Aircraft Accident Investigation Bureau (AAIB)’s preliminary report found “no fault” with the airline’s operating procedures or maintenance practices.

“The interim report indicated that there was nothing wrong with the aircraft engines or our practices that required changing,” Wilson said. “However, we continue to introspect and look for ways to keep improving and learning.”

The AAIB’s findings revealed that fuel supply to both engines was severed shortly after take-off, leading to the tragedy.

Meanwhile, Air India’s financial performance continues to weigh on the Tata Group’s aviation portfolio. According to figures shared by Minister of State for Civil Aviation Murlidhar Mohol in the Lok Sabha on August 21, Air India and Air India Express together posted a pre-tax loss of Rs 9,568.4 crore in FY25.

Of this, Air India recorded a loss before tax of Rs 3,890.2 crore, while Air India Express reported a loss of Rs 5,678.2 crore, reversing its previously profitable trend.

By contrast, IndiGo remained the only major Indian carrier to post a profit, recording a pre-tax gain of Rs 7,587.5 crore during the same period. SpiceJet and Akasa Air reported pre-tax losses of Rs 58.1 crore and Rs 1,983.4 crore, respectively.

The financial strain, compounded by safety reviews and airspace disruptions, underscores the uphill task facing Tata Group as it continues efforts to transform Air India into a world-class airline through modernisation, integration, and improved service quality.

With IANS inputs