NEW DELHI – Air India is in search of about US$1.5 billion (S$1.9 billion) in contemporary fairness from its homeowners, Tata Sons and Singapore Airways, months after the second-largest Indian airline posted a document annual loss, two individuals accustomed to the matter advised Reuters.
It might be one in all Air India’s largest publicly reported requests for shareholder funding since Tata took management of the previous state-owned provider in 2022. It highlights the challenges going through the airline because it undergoes a multibillion-dollar revamp, together with the refurbishment of its present fleet.
The provider and its finances unit Air India Categorical posted combined losses of US$2.33 billion within the fiscal 12 months ended March, greater than double the prior 12 months’s losses. The losses have additionally weighed on SIA’s income.
“Air India desires the funds instantly, although the infusion is more likely to occur in tranches. Singapore Airways would want to contribute its share of the proposed infusion for the funding to undergo,” one of many sources stated.
It’s in search of the funding within the type of contemporary fairness, the 2 individuals stated. Discussions are ongoing and no resolution has been taken on the request, they added, declining to be named as they weren’t authorised to debate the matter publicly.
Air India and Tata Sons didn’t reply to Reuters requests for remark.
SIA, which owns round 25 per cent of Air India, stated it was working intently with Tata Sons to help Air India’s transformation programme, however declined to touch upon the airline’s funds.
Air India’s turnaround efforts
Air India has additionally been hit by Pakistan’s airspace ban on Indian carriers, disruptions to its worldwide community from the US-Israeli struggle with Iran and the fallout from a deadly crash in 2025 that killed 260 individuals.
Its funding request comes as Tata Sons chairman N. Chandrasekaran prepares to step down in February following months of disagreements with the group’s controlling charitable belief, partly over Air India’s losses.
Chandrasekaran has stated Air India’s turnaround could take up to a decade, citing persistent supply-chain disruptions and the necessity to overhaul the airline’s legacy methods, tradition and fleet.
Air India has sought to defer deliveries of tons of of jets on order from Airbus and Boeing as Tata presses the provider to chop prices and cut back document losses, Reuters reported earlier in 2026.
“Air India is predicted to proceed requiring capital infusions within the coming years,” one of many sources added. REUTERS
